Loop Capital recently changed its rating on Apple from “Buy” to “Hold” because of weaker sales expectations. The investment firm cut its price target from $370 to $330. According to the firm, the tech giant will likely ship 13 million fewer smartphones in the second half of 2026 than previously planned. The firm also lowered its shipment forecast for the December quarter from 85 million to 79 million units.
Analysts revise shipment numbers based on recent supply checks
At first, Loop Capital thought parts shortages caused delays that the company would make up for next year. New checks on the supply chain changed that view completely. The firm now thinks the average selling price of an iPhone will drop from $1,239 to $1,123.
Looking ahead to 2027, the firm actually raised its shipment estimates to 260 million units. However, they expect those devices to sell for less money on average. Because of this change, they lowered their revenue forecast for the year from $315 billion to $285 billion. On top of that, higher memory costs could put pressure on overall profits.
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A split product release schedule creates financial outlook challenges
The company decided to split its phone releases this year, making things harder to predict. While the iPhone 18 Pro came out in September and the foldable iPhone Duo launches soon, other models are missing. Buyers will have to wait until spring 2027 for the standard iPhone 18, the budget-friendly iPhone 18e, and the new iPhone Air 2.
Counterpoint Research noted that missing the standard model hurt the company’s shipments in the third quarter. Even with fewer phones going out, the tech giant still managed to grab a record 22% of the global market. This split strategy shows they can hold their ground even when the wider smartphone market shrinks by 20% compared to last year.
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