(Bloomberg) — Apple Inc. is on the verge of a 2021 pandemic, after a Jefferies analyst said investors had too optimistic expectations for the company’s latest iPhone, which is the first to feature artificial intelligence tools. ‘s stock price fell 2.3%.
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“High market expectations (5% to 10% volume growth) will not be met due to lack of significant new features and limited AI coverage,” said Jefferies analyst Edison Lee. “High expectations for iPhone 16/17 are premature.” , underwritten coverage of the stock with a hold rating. The company was previously rated “buy”.
Apple’s stock price is up about 34% from its April lows, with much of the gain driven by optimism that AI capabilities will encourage consumers to upgrade their phones and re-accelerate revenue growth. is reflected. But early signs show demand is mixed.
Lee believes that Apple is “the only integrated hardware and software company that can leverage its own data to deliver low-cost, personalized AI services,” and believes that the long-term outlook for AI He said he was aware of the possibility. However, he said current valuations are “rich” and AI will not be a driver in the short term.
“Smartphone hardware will need to be reworked before full-scale AI can be realized,” and the schedule is “likely to be in 2026/27.”
Wall Street is more cautious about Apple than other big tech companies. Only 65% of analysts recommend buying the stock, compared to nearly 90% or more for Microsoft, Nvidia, and Amazon.com.
(Update on market close.)
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