Apple Stock Finally Ends Its Losing Streak. Here's What Analysts Think Will Happen Next

Once the darling of the tech world, Apple is feeling the effects of changing investor preferences. The excitement generated by AI technologies has overshadowed companies like Apple, which is perceived to lack comparable innovation potential. Recent setbacks, including discontinuing its Apple car manufacturing ambitions and regulatory losses in Europe concerning third-party payments and app stores, have only compounded the situation.

Apple ended at $170.73 on Friday, denoting a +1.02% adjustment from its last day's close. Prior to Friday's trading, shares of the maker of iPhones, iPads and other products had lost 10.26% over the past month.

Here are some of the factors that analysts believe Apple's future outlook is largely depending on.

iPhone Sales Under Pressure
A recent Counterpoint Research report shows Apple, along with other smartphone manufacturers like Oppo and Vivo, experiencing double-digit year-over-year declines.
"Apple is caught between aggressive pricing from competitors and Huawei's resurgence at the high end," analysts commented. The iPhone 15, despite being an impressive device, did not offer significant enhancements over its predecessor, leading many consumers to postpone upgrades.

Loyalty in China Remains, But Upgrades Delayed
Despite the lukewarm reception to the latest iPhones, Apple's customer retention rates in China are unmatched. However, Ben Bajarin, CEO of Creative Strategies, notes in an interview with Yahoo Finance that Chinese consumers may delay their upgrade cycles in anticipation of AI advancements in future Apple products. "While sales aren't lost, they are certainly delayed," Bajarin said.

Apple Car Backpedal
With the complexity of automotive manufacturing laid bare by the struggles of companies like Rivian and Lucid, analysts like Sam Fiorani of AutoForecast Solutions suggest Apple's best play is in software, not manufacturing. "Apple could greatly impact the automotive industry by enhancing user experience through its design and interaction expertise," Fiorani explained.

Berkshire Hathaway Sells Apple Shares
Warren Buffett's Berkshire Hathaway disclosed a reduction of its Apple stake by 10 million shares last month. Still one of Apple's largest shareholders, the move by Buffett raised eyebrows and concerns. A Mizuho desk analyst speculated, "If Buffett continues to sell, we could see a significant impact on Apple's share price, potentially leading to a rush to the exit by retail investors."

Technical Analysis Signals Caution
Technical trends suggest further caution, with Apple's stock failing to maintain the $180 support level. "The break below and the struggle to hold suggests a possible pullback," said Todd Sohn of Strategas Securities. "Although Apple might see a short-term bounce, the overall trend points to a deteriorated outlook."

Looking Ahead
As Apple navigates through these turbulent times, the company's ability to innovate and pivot in response to market demands will be crucial.
With a legacy of transformation and a solid foundation in consumer loyalty, Apple is at a crossroads that will define its future in an increasingly competitive tech landscape. Whether it can once again redefine itself in the face of recent challenges will be a central question for one of the world's most watched and valued companies.