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Apple Stock Takes a Hit as iPhone Upgrade Hype Fades

Apple Stock Takes a Hit as iPhone Upgrade Hype Fades

Apple’s iPhone upgrade cycle is losing steam, and Wall Street isn’t happy. Analysts are cutting iPhone sales forecasts for 2025, citing delays in AI-powered Siri upgrades and stagnating upgrade rates.

With Apple stock falling for four straight trading sessions, investors are left wondering: Is Apple losing its edge?

Why Analysts Are Cutting Apple’s iPhone Forecasts

Apple’s struggles stem from two major issues:

📉 Weak iPhone sales projections – Analysts now expect just 1% iPhone growth in 2025, down from 7% just two quarters ago.
🤖 Delayed AI features – The much-anticipated AI-powered Siri upgrade has been pushed back, possibly until 2026.

Key Analyst Reactions:

🔹 KeyBanc Capital Markets downgraded Apple stock to "underweight" (sell) with a $200 price target, citing weak iPhone demand.
🔹 Morgan Stanley cut its price target from $275 to $252, warning that Apple has "fewer features to accelerate iPhone upgrades."
🔹 Citi removed its 90-day positive catalyst watch on Apple stock, but maintained a buy rating with a $275 price target.

The lack of compelling AI features is a big red flag for investors who were hoping Apple’s AI push would drive a massive iPhone upgrade cycle.

iPhone Sales Are Slowing—And I See It Firsthand

From my personal experience, iPhone sales growth is truly slowing down.

📌 Many of my friends and colleagues are still using older iPhones and have no immediate plans to upgrade.
📌 There’s no urgency to buy the latest model, especially since recent upgrades haven’t been game-changing.

The reality is, without major hardware or AI advancements, people are holding onto their devices longer than ever before.

brown tortoise on brown sand
Photo by Nick Abrams / Unsplash

Why Apple Is Moving Slowly on AI

Some argue that Apple is falling behind in AI, but I believe there’s a reason for this.

Unlike other tech giants rushing to launch AI features, Apple is known for its perfectionist approach. I think they are:

✅ Conducting thorough, serious testing to make sure their AI is polished and useful.
✅ Waiting to deliver a truly impressive AI experience, instead of releasing something half-baked.

This means short-term delays, but in the long run, Apple could make a big splash in AI once they’re ready.

The Long-Term Outlook: A Comeback in 2027?

While iPhone sales might stay flat in the near future, Apple still has major innovations on the horizon:

🔹 A complete iOS redesign is coming – This could breathe new life into the iPhone experience.
🔹 Rumors of a foldable iPhone by 2027 – If Apple delivers a high-quality foldable phone, it could be a massive game-changer.

If Apple truly brings a premium foldable device to market, it could spark a new upgrade cycle and revive iPhone sales growth.

Final Thoughts: Is Apple Still a Buy?

Apple remains one of the most valuable companies in the world, but the recent AI delays and weak iPhone projections are shaking investor confidence.

📉 Short-term struggles – iPhone sales are slowing, and AI features are delayed.
🚀 Long-term potential – A foldable iPhone and iOS redesign could revive excitement by 2027.

💬 Do you think Apple is falling behind in AI? Will iPhone sales bounce back with a new design or foldable model? Drop your thoughts on X(Former Twitter)

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