Apple’s growth seems to be losing steam, and Wall Street is starting to notice. J.P. Morgan has lowered its target for Apple’s stock price, warning that iPhone sales may slow, and interest in the upcoming models could be weaker than expected. The new price target has dropped to $230, down from $240, reflecting reduced expectations for Apple’s revenue and earnings over the next 18 months. Analysts are concerned about weaker demand for the iPhone 17 series and broader economic pressures affecting consumer spending.
According to the latest report, many people rushed to buy iPhones earlier than usual to avoid potential price hikes linked to tariffs from the Trump administration. This surge in purchases may result in fewer people upgrading to the iPhone 17. After all, if someone recently bought an iPhone 16, would they be in a hurry to upgrade to the new model? Additionally, the upcoming iPhone 17 is expected to have limited hardware changes, which could dampen consumer enthusiasm.
As a result, production forecasts for the iPhone 17 are reportedly lower than those for the iPhone 16, with production units expected to drop by about 9%. Although Apple plans to ship a similar number of iPhones as in 2024, the second half of the year could see weaker sales. Furthermore, J.P. Morgan forecasts slower growth for Apple’s Services division, which has been a key contributor to the company’s growth in recent years. Despite Apple’s shift of its supply chain from China to India to avoid U.S. tariffs, it seems this move won’t fully offset expected volume losses due to higher prices.
Looking ahead, J.P. Morgan sees a potential recovery for Apple with the iPhone 18 series in the future. Additionally, the company is expected to release its first foldable iPhone in 2026, along with advanced AI features. These developments could revitalize interest in Apple products and accelerate growth for fiscal year 2027. Meanwhile, the company’s 2025 earnings predictions remain largely unchanged, although its growth expectations for Services and profit margins have been slightly reduced.
In the long run, Apple’s iPhone sales may slow down, especially if prices rise and consumers become more cautious. The impact of international trade tariffs could also put pressure on Apple’s profits. Interestingly, while AI is gaining attention from investors, Apple is taking a more cautious approach to integrating the technology compared to its competitors. The company is aiming for a major breakthrough in 2026 with smarter AI features, including a new and improved Siri, and a possible foldable iPhone by then. However, production might start later than expected, with some speculating a 2027 launch. For now, Apple’s steady income from its services and careful management of profits are keeping investors satisfied.
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