Alphabet's AI Revenue Soars Despite Tariff Risk, Apple's iPhone Demand Weakness Slashes Price Forecast

Apple Analyst Slashes Price Forecast on Weak iPhone Demand, AI Revenue Despite Less Tariff Pressure

A prominent Apple analyst has reduced his price target and revenue forecast for the tech giant, citing weaker-than-expected iPhone demand and a slower-than-anticipated ramp-up in artificial intelligence (AI) revenue.

In a research note, analyst Ming-Chi Kuo of TF International Securities slashed his price target for Apple's (AAPL) shares from $170 to $145, citing concerns over iPhone sales and the company's ability to maintain its profit margins.

Kuo's reduced forecast comes as Apple is set to report its fiscal second-quarter earnings later this month. The company's iPhone sales have been a key driver of its revenue growth in recent years, but Kuo believes that demand for the device is weakening due to a number of factors, including intense competition from Chinese smartphone manufacturers and a lack of major innovations in the latest iPhone models.

In addition to the iPhone, Kuo is also concerned about Apple's AI revenue, which has been a key area of growth for the company in recent years. While Apple has been investing heavily in AI research and development, Kuo believes that the company's AI revenue will grow more slowly than previously anticipated, due in part to increased competition from other tech giants.

Despite the challenges facing Apple, Kuo noted that the company's revenue is likely to receive a boost from the reduced tariffs imposed by the Trump administration on Chinese goods. The tariffs, which were previously set at 25%, were reduced to 10% in December, and Kuo believes that this change will have a positive impact on Apple's revenue.

Overall, Kuo's reduced forecast for Apple's shares reflects his concerns over the company's ability to maintain its profit margins in a increasingly competitive market. Despite the challenges facing the company, Kuo believes that Apple's strong brand and loyal customer base will continue to drive its revenue growth in the long term.