Apple stock down as Needham cuts estimates on lower iPhone sales

Shares of Apple (AAPL) are trading lower after Needham's Laura Martin lowered estimates for the tech giant to reflect iPhone sales concerns and weakness in China. The estimates are offset by slightly higher revenue for iPads and Macs, with the Needham analyst remaining bullish.

Julie Hyman and Josh Lipton break down Apple's sales estimates.

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This article was written by Gabriel Roy.

Video transcript

JULIE HYMAN: Apple shares are sliding today. Needham Laura Martin over there coming out with a note lowering estimates for the tech giant amid iPhone sales concerns and weakness in China. Now, this is something that has gotten a lot of attention recently from the street here. The shares are down another 1.6% today. And they basically, this is an acknowledgment of what's been out there that there's concern about iPhone sales and weakness in China. However, Laura Martin also saying it's offset a little bit by slightly higher revenues than previously expected for iPads and Macs.

But that said she is cutting these estimates.

JOSH LIPTON: Yeah. She remains bullish. She didn't change her price target either. It's 220. But she just-- in her words, she says Apple's anemic or negative growth outlook. And expected cost increases to fund GenAI. She says it's preventing new investors from stepping in at these levels. Even though as the stock is down about 12% now Julie this year.