Apple’s iPhone Revenue Could Decline
While global smartphone shipments fell by 20%, Apple’s market share increased from 18% to 22%.
US investment firm Loop Capital has downgraded its recommendation on Apple shares from “Buy” to “Hold”. The decision stems from concerns that the expected growth in iPhone sales may not materialise.
Apple had previously reduced its iPhone shipment plans for the second half of 2026 by approximately 10%. Initially, this reduction was attributed to problems with memory and processor supplies, with the expectation that the shortfall would be made up later. However, according to Loop Capital’s latest assessment, Apple does not plan to make up for approximately 13 million iPhones that were not shipped as originally planned.
As a result, Loop Capital has lowered its target price for Apple shares from $370 to $330. The firm forecasts that Apple will ship 79 million iPhones in the December quarter, compared with the market expectation of 85 million devices.
Although iPhone sales are expected to reach 260 million units in 2027, the revenue forecast has been reduced from $315 billion to $285 billion. This is due to expectations of a lower average selling price. Rising memory costs could also put pressure on Apple’s profit margins.
Nevertheless, Apple’s market position remains strong. While global smartphone shipments declined by 20%, Apple’s market share increased from 18% to 22%.