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Investment firm Loop Capital predicts Apple's annual revenue will decline in 2024, iPhone demand too soft.
Other investment firms such as JP Morgan are predicting Apple's recovery in China, and those such as Morgan Stanley believe the company will benefit from the cancellation of the Apple Car. However, Loop Capital is focusing on the iPhone and only sees growing problems for Apple.
Analyst Ananda Baruah says he now believes both Apple's overall revenue and earnings per share will decline in 2024. This will happen for the first time since 2016.
“Simply put, iPhone supply is too low due to organic demand and competition,” Baruah said. He says current estimates for Apple's March quarter results are at “some risk,” while June earnings are at “substantial risk.”
According to Apple's Loop Capital, average selling prices for iPhones across its lineup and globally are stabilizing. Baruah says demand in China has slowed and that iPhone sales have generally returned to pre-COVID levels.
A second report from Loop Capital, this time mostly from analyst John Donovan, claims that Apple has significantly reduced orders for the iPhone 15 line. According to Donovan, the reduction will be between 7% and 8%, which is means Apple now forecasts sales of 199 million iPhones in 2024.
As a result, Loop Capital lowered its price target from $185 to $175. Baruah argues that news about generative artificial intelligence and the potential future success of Apple's Vision Pro could serve as a catalyst for Apple's improved position.
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