Apple Gets Downgrade on Expectation for Unit Growth Slowdown

Dow Jones00:30

1230 ET - Apple's stock looks overly expensive as several factors threaten to pressure unit growth, KeyBanc Capital Markets analysts say in a note. The device maker's recent price increases for iPad and Mac, and a potential hike for iPhone prices, will likely drive a slowdown in unit growth, the analysts say. That will in turn weigh on user growth which is correlated with its services business, the analysts say. Additionally, U.S. carriers like Verizon and AT&T seem to be pulling back on device subsidy offers, which could encourage consumers to hold onto their devices for longer and upgrade less frequently, pressuring domestic growth, they say. That makes international growth increasingly important for Apple, where iPhone price increase will make it tough to gain customers, they say. The analysts downgrade the stock to underweight from sector weight, with a $250 price target. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

July 14, 2026 12:30 ET (16:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment