What Analysts Think of Apple Stock Ahead of Earnings

Core Insights - Apple is expected to report fiscal first-quarter results, with analysts looking for signs of recovery after a challenging start to 2025 [1][7] - The consensus price target for Apple is approximately $246, indicating a potential upside of about 7% from the recent closing price [1] Financial Projections - Projected fiscal first-quarter revenue is $124.39 billion, reflecting a 4% year-over-year increase, with iPhone revenue anticipated to grow 2% to $70.72 billion [2] - Expected earnings are $35.63 billion, or $2.35 per share, up from $33.92 billion, or $2.18 per share a year ago [2] Market Concerns - Apple's stock has declined about 8% since the beginning of the year, primarily due to concerns over decreasing smartphone shipments in China, where competitors like Vivo and Huawei are gaining market share [3] - JPMorgan analysts have expressed concerns that Apple may have already surpassed its product cycle peak in China, leading to a price target reduction from $265 to $260 [4] Potential for Recovery - Wedbush maintains a higher price target of $325 for Apple, suggesting that a turnaround in China could be possible, especially if an AI partnership is announced soon [5] - Speculation exists regarding a potential partnership with Baidu, with other candidates including ByteDance and Tencent [5] AI Developments - Amid a selloff in AI-related stocks, Apple managed to perform well, possibly due to its lower AI expenditures compared to peers like Meta and Microsoft [6] - A recent software update has enabled Apple Intelligence features by default on supported devices, marking a significant step in the rollout of AI capabilities [7] - Following the software update, Apple's shares rose 3.2% to $229.86, with a 20% gain over the past year [7]