Apple Falls as Jefferies Says AI iPhone Hopes Are Overblown
- High expectations are premature, says analyst with hold rating
- Shares have recently rallied on hopes for growth boost
The Apple iPhone 16 Pro and Pro Max at Apple Park campus in Cupertino, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Apple Inc. shares fell 2.3% after a Jefferies analyst said investors have overly optimistic expectations for the company’s latest iPhones, the first to come with artificial-intelligence tools.
“The high expectations for iPhone 16/17 are premature,” as “a lack of material new features and limited AI coverage mean high market expectations (5%-10% unit growth) are unlikely to be met,” wrote Jefferies analyst Edison Lee, who assumed coverage of the stock with a hold rating. The firm previously had a buy rating.