Analysts Cut Apple Price Targets Amid AI Delays, Cost Pressures

Analysts have recently lowered their price targets for Apple, citing a combination of delayed AI feature rollouts, particularly for Siri, and rising supply chain costs due to anticipated tariffs. These delays are expected to impact future iPhone upgrade cycles, as consumers may wait for more advanced features, while short-term iPhone demand has seen a pull-forward effect as buyers act before tariffs take effect. Despite reduced earnings and revenue forecasts for the coming years, some analysts remain optimistic about Apple's long-term prospects, highlighting the potential for innovation following leadership changes in the AI division. However, others warn of ongoing margin pressures, increased production costs, and stiffening competition from rivals like Google and Microsoft. The consensus among analysts is to maintain a cautious but generally positive outlook, with an average recommendation to 'Outperform,' though views on the pace and payoff of Apple's AI strategy remain divided. Recent market moves reflect these mixed sentiments, with Apple stock experiencing modest declines but remaining on Wall Street's watchlist.