Apple Stock Falls as Analyst Downgrades and Supply-Chain Concerns Bite
Apple's stock price dropped by 1.2% in pre-market trading as it went ex-dividend for its quarterly $0.27 payout, reducing its opening price.
A string of analyst and supply-chain concerns contributed to the decline, with Jefferies downgrading Apple to Underperform and slashing its price target to $263.66 from $285.56.
The cancellation of the all-glass iPhone due to low manufacturing yields and cuts to earnings estimates through fiscal year 2029 were cited as reasons for the downgrade.
Additionally, a report revealed that Apple has been testing memory chips from China's CXMT for use in its iPhones and MacBooks, introducing regulatory and geopolitical risks.
The company is seeking White House approval before formalizing any supply arrangement with the Chinese chipmaker.