Apple shares fell on Tuesday following Barclays’ downgrade of their stock, according to LSEG data. Apple now boasts its highest number of bearish recommendations in two years according to Barclays.
Analyst concerns about Apple include weak iPhone sales and potential risks to its services business, which represents a large chunk of Apple revenue. He joins “Power Lunch” to discuss these issues further.
Apple Shares Slip On Report U.S. Government Preparing Antitrust Lawsuit
Apple is an American success story multiple times over. First it ushered in the personal computer revolution with its Mac in the 80s; later reinvented portable music players like iPod and iTunes; and most recently transformed mobile phones through iPhone.
But Apple’s recent sales slump shows it isn’t immune from challenging market conditions. On the upside, however, poor market conditions don’t last forever and its dominance in various product categories could bring substantial long-term gains for investors.
Rosenblatt Securities senior analyst Barton Crockett joins CNBC’s Squawk Box to discuss Apple’s turbulent start to 2024 and subsequent stock downgrade. Also on the show: Apple has suspended online and physical sales of Watch Series 9 and Ultra 2, and shares of household cold and flu brand maker Reckitt Benckiser have suffered after FDA warned its products contain potentially addictive phenylephrine-containing medicines from pharmacy shelves.
Apple Watch
Apple’s wearable technology device, the Apple Watch, has quickly become one of the world’s most beloved accessories. Allowing users to accomplish various tasks – from tracking exercise and email checking, to health monitoring via an electrocardiogram and blood oxygen sensor, as well as fall detection with emergency alerts to family or emergency services – without taking out their phone is one of its greatest strengths. It allows users to track exercise progress easily while monitoring oxygen levels and checking email all without taking out their phone! Developed initially as an exercise tracker in 2023 it also has health monitoring features including electrocardiography and blood oxygen sensor technology allowing users to monitor health monitoring features including electrocardiography/BOS with blood oxygen sensor technology built-in that detects accidents quickly without taking out their phone – saving users both time and effort by sending emergency alerts out.
Jony Ive, Apple’s design chief, described the process of making their Watch as being “humbling”. Reinventing the iPhone proved easier; with Watch design having to strike a balance between high tech innovation and user desire.
Apple Pay
The Justice Department is currently conducting an investigation into how Apple keeps customers tied into its ecosystem, such as how Apple Watch works better when worn with an iPhone and iMessage is only compatible with devices running iOS software. They’re also investigating whether their App Store rules violate antitrust laws by charging 15%-30% commission on in-app purchases and paid downloads.
Tech giant Apple is struggling to expand beyond its iPhone business, which could become problematic should government interventions enter that market. Apple Shares fell by nearly three percent this week following two analyst downgrades at Piper Sandler and Barclays that sent shockwaves through investors.
Apple faces stiff competition from Chinese rivals in artificial intelligence (AI). China’s rapid progress with AI and self-driving vehicles could eat into sales of iPhone hardware from Apple. Furthermore, Chinese regulators reportedly plan to limit government employee use of Apple products.
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