Why One Analyst Is Concerned the Day Before Apple's Earnings Report

Core Insights - Apple shares have increased approximately 40% over the past nine months, but analysts suggest caution ahead of the upcoming earnings report [2][5] - A majority of analysts maintain a "buy" or equivalent rating, with a consensus price target of around $246, indicating a 3% premium over the recent price of $239 [2][5] Analyst Ratings and Sales Estimates - Oppenheimer downgraded Apple to a neutral "perform" rating and reduced its iPhone sales estimates for the next 12 to 18 months, citing increased competition in China and an underwhelming rollout of Apple Intelligence [3][5] - Concerns regarding Apple's performance in China have intensified, with Canalys reporting a 17% decline in iPhone shipments for 2024 [4][5] Regional Sales Performance - Analysts expect Apple's sales in China and the rest of Asia (excluding Japan) to rise only 2% year-over-year to $31.65 billion [5]