Oppenheimer Downgrades Apple Before Earnings Release

Apple's stock was downgraded by Oppenheimer from Outperform to Perform due to concerns over slowing iPhone sales and intense competition in China, coupled with a lack of compelling AI features. This downgrade precedes Apple's Q1 fiscal 2025 earnings release, with the firm removing its $250 price target and adjusting its revenue forecasts downward. Analysts highlighted a decline in iPhone shipments to China, with shipments dropping 25% in Q4 and 17% for 2024, suggesting a slow replacement cycle into FY 2026. Apple's market share in China has decreased from 19% to 15% due to pressure from Android manufacturers. As Apple prepares to release its earnings report, Wall Street anticipates adjusted EPS of $2.35 on $124.04 billion in revenue. The downgrade reflects a broader market sentiment, as Apple has received similar downgrades from other firms, positioning it unfavorably among other tech giants.