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Recent challenges for Apple (AAPL) have pushed analysts to adopt a cautious stance on the stock. MoffettNathanson downgraded Apple to a “Sell” rating, citing a trifecta of challenges: weak consumer response to the AI-enabled iPhone 16, growing competition from Chinese rivals like Huawei, and looming regulatory risks from a U.S. antitrust case against Alphabet (GOOG). The downgrade was accompanied by a price target cut to $188 from $202, reflecting concerns about Apple’s ability to navigate these headwinds.
Analysts have raised questions about whether Apple’s heavily marketed “Apple Intelligence” features can drive demand for its latest devices. Meanwhile, Alphabet faces its own hurdles, as the DOJ lawsuit could disrupt its profitable search partnership with Apple.