Apple’s stock slipped slightly on Thursday after JPMorgan lowered its 12-month price target for the company from $240 to $230. The investment bank cited weakening demand for the upcoming iPhone 17 and broader economic pressures but kept its “Overweight” rating unchanged, indicating continued long-term confidence.
According to Investor’s Business Daily, the revision highlights mounting uncertainty around Apple’s product roadmap and its slow-moving AI strategy. Analyst Samik Chatterjee noted a lack of compelling demand drivers for the iPhone 17 cycle, forecasting a dip in unit builds from 93 million (iPhone 16) to 85 million for iPhone 17 in 2025. Despite the cut, JPMorgan still sees recovery ahead, with stronger prospects tied to the iPhone 18 series and the expected launch of a foldable model.
Weaker Demand, Slower Growth
Chatterjee’s report outlines multiple challenges converging on Apple this year: early upgrades driven by tariff fears, macroeconomic uncertainty, and muted enthusiasm for the iPhone 17. The bank now expects Apple’s fiscal 2026 growth to slow, with meaningful upside delayed until 2027, when AI investments and next-generation devices may begin to show results.
JPMorgan’s forecast assumes that the iPhone 18 will reverse current trends, introducing more substantial hardware changes and broader integration of AI features. Apple has long delayed those updates, creating a gap between consumer expectations and actual product delivery.
AI Hesitations and the Perplexity Deal
A separate note from UBS analyst David Vogt addressed speculation around Apple’s possible acquisition or partnership with Perplexity AI. Vogt expressed skepticism, calling the potential $14 billion investment a defensive move rather than a strategic breakthrough. He also cited Perplexity’s legal controversies, including plagiarism allegations, as red flags. UBS maintains a neutral rating on Apple with a $210 price target.
In contrast, Loop Capital Markets analyst Ananda Baruah offered a more positive take. He argued that acquiring Perplexity could help Apple close its AI talent gap and position Siri as a stronger competitor to Google Search. His rating remains at hold, with a price target of $215.
Apple stock closed at $201 on Thursday, down 0.28%. While JPMorgan’s revised outlook doesn’t signal panic, it reflects real pressure on Apple to deliver meaningful innovation beyond incremental updates. The path forward hinges on Apple’s ability to shift momentum with the iPhone 18 and finally turn its AI strategy into tangible growth.