Apple’s stock has been downgraded by Phillip Securities from Neutral to Reduce, as high valuation concerns and short-term challenges outweigh the impact of the company’s latest product releases. The firm maintained its target price at $200 per share.
The downgrade comes after Apple’s stock surged nearly 14% in the past three months, outperforming the Nasdaq’s 9.1% gain. Analyst Helena Wang noted that tariffs, elevated capital expenditure, and a lack of major AI innovation continue to weigh on Apple, alongside weak product demand and challenges in the China market.
At its “Awe-Dropping” event on September 9, Apple unveiled the iPhone 17 series, including the ultra-thin iPhone Air at just 5.6 mm, as well as Pro and Pro Max models. The lineup features the new A19 Pro chip, improved cameras, and an enhanced Ceramic Shield. Apple also introduced updated AirPods with real-time AI translation and the Apple Watch Series 11, which adds hypertension detection and stronger durability.
Despite these updates, Wang highlighted that most enhancements are incremental rather than disruptive. The much-anticipated Siri overhaul has been delayed until 2026, leaving Apple behind rivals in AI development. She also warned that the iPhone Air could draw demand away from the Pro and Pro Max models rather than expanding Apple’s customer base.
Pricing for the iPhone 17 series remains unchanged from last year’s iPhone 16 launch, starting at $799, though the entry model now includes 256GB of storage. However, Apple’s decision to absorb tariffs and rising production costs is expected to put more pressure on margins, which already fell by 140 basis points year-on-year in the June quarter.
