Apple shares hit by downgrade on iPhone 15 disappointment

Apple futures were falling sharply on Tuesday morning after analysts at Barclays cut their rating on the stock from 'equal weight' to 'underweight'.

The bank said iPhone 15 sales had been "lacklustre" and that strong growth in emerging markets wasn't enough to offset sales weakness in China and other developed regions. Barclays also predicted that the iPhone 16 launch would be equally underwhelming.

After a near-50% surge in the share price in 2023, the bank said: "We expect reversion after a year when most quarters were missed and the stock outperformed."

“The continued period of weak results coupled with multiple expansion is not sustainable,” analysts said. “We also believe 2024 will bring more Services risk to light.”

The bank trimmed its target price from $161 to $160, suggesting significant downside from last week's closing price of $192.53.

Stock futures were down 2.4% at $188 by 0828 ET, an hour before the opening bell.