Apple Inc. (AAPL) has taken a hit in 2025, with its stock price sliding approximately 17% year-to-date, closing at $201.08 on June 27, 2025, according to Yahoo Finance. This downturn stands in sharp contrast to the broader market, where the S&P 500 soared to a record high of 6,173.07 and the Nasdaq Composite hit 20,273.46 on the same day (Yahoo Finance). While tech giants like Nvidia have fueled market gains, Apple’s struggles have made it the weakest performer among the “Magnificent Seven” stocks, including Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla. So, what’s dragging Apple down, and why are analysts sounding the alarm?
The primary culprit is weak iPhone sales, particularly in China, a critical market accounting for about 17% of Apple’s revenue. Research from Canalys shows iPhone shipments in China fell 17% to 42.9 million units in 2024, pushing Apple to third place in market share (Yahoo Finance). Consumers aren’t upgrading, partly due to a lack of compelling AI features in the latest iPhones, as competitors race ahead with advanced generative AI offerings. Adding to the pressure, Apple’s shift to diversify manufacturing to India has sparked concerns about U.S. tariff threats from President Trump. Apple’s CEO Tim Cook warned that tariffs could cost Apple $900 million in a single quarter, roughly 1% of total revenue, unsettling investors.
Apple’s ambitious AI plans have also hit a snag. The much-hyped Siri upgrade, initially expected in 2025, is now delayed until Spring 2026, dampening hopes for a near-term boost from Apple Intelligence. This delay could further discourage iPhone upgrades, as consumers wait for more advanced AI capabilities. Meanwhile, Apple’s stock is trading at a forward price-to-earnings ratio of about 26, a premium 50% above its 10-year average and higher than many Big Tech peers, making it less attractive to investors seeking growth (CNBC).
The broader market context doesn’t help. While the S&P 500 has gained 4.96% YTD and the Nasdaq surges, Apple’s -19.51% return underscores its lag (Yahoo Finance). The 2025 Worldwide Developers Conference (WWDC) failed to impress, with updates to operating systems and Apple Intelligence deemed underwhelming, offering little to spark a device upgrade cycle. Apple’s Services segment, including the App Store and iCloud, faces risks from regulatory scrutiny in the EU, which could dent profitability. Other products like the iPad and MacBook haven’t stepped up to offset iPhone weakness, as the consumer electronics market remains sluggish.
Analyst sentiment has turned cautious, with several firms downgrading Apple’s stock. Barclays maintained its “Sell” rating with a $173 price target, citing weak iPhone demand, tariff risks, and Services vulnerabilities. Needham shifted from “Buy” to “Hold” on June 4, 2025, pointing to Apple’s pricey valuation and AI competition. Jefferies dropped Apple to “Underperform” from “Hold” on January 21, 2025, with a $200.75 target, noting slow AI adoption and a likely miss on revenue guidance. MoffettNathanson also downgraded to “Sell” from “Neutral” on January 7, 2025, with a $188 target, highlighting negative news flow and weak demand (Business Insider).
Yet, not all analysts are bearish. TipRanks reports a Moderate Buy consensus for Apple, with 13 Buy, eight Hold, and two Sell ratings. CFRA Research maintains a “Buy” rating with a $260 target, banking on Apple’s aging installed base and long-term AI potential, while Goldman Sachs holds a “Buy” rating with a $253 target, citing strong financials and Services growth (TipRanks). Apple’s market cap still stands at an impressive $3.015 trillion, but its drop from a 52-week high of $260.10 in December 2024 signals challenges ahead.
For Apple fans and investors, the 17% dip raises questions about the company’s near-term trajectory. While tariff threats, delayed AI features, and a high valuation weigh heavily, Apple’s massive ecosystem and loyal customer base offer hope for a rebound. Keep an eye on updates to Apple Intelligence and how the company navigates global trade tensions. For now, as the S&P 500 and Nasdaq hit new peaks, Apple’s shine has dimmed—but its story is far from over.
Editorial Note: This article was generated by artificial intelligence and carefully reviewed by our editorial team to ensure accuracy and clarity as part of ongoing testing in AI-assisted content creation.
