Apple (AAPL) stock lost 5.2% on March 10 after the company confirmed a delay in the rollout of “more personalized” Apple Intelligence-powered Siri features.
The AI features were initially expected to launch as early as April. The company now expects them to be introduced “in the coming year.”
“It’s going to take us longer than we thought to deliver on these features,” Apple spokeswoman Jacqueline Roy told Daring Fireball.
“In just the past six months we’ve made Siri more conversational, introduced new features like type to Siri and product knowledge, and added an integration with ChatGPT,” Roy said.
“We’ve also been working on a more personalized Siri, giving it more awareness of your personal context, as well as the ability to take action for you within and across your apps.”
Apple’s stock-price drop follows a week of turbulence as investors reacted to macroeconomic pressures.
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In late February a tech selloff driven by disappointing Nvidia (NVDA) results dragged down the Nasdaq 100. President Donald Trump’s tariffs also have added economic uncertainty.
Meanwhile, the White House has hinted at the possibility of an economic downturn. Trump has declined to say that a recession won’t occur as he attempts to restructure the government.
The U.S. job market fell short of expectations in February, with employers adding fewer jobs than anticipated, while the unemployment rate edged up to 4.1% from 4% in the previous month.
IPhone fiscal-Q1 sales declined
On Jan. 30 Apple reported a decline in iPhone sales for the fiscal 2025 first quarter, which ended Dec. 28, 2024.
iPhone revenue for the quarter declined nearly 1% to $69.14 billion. The sector remains the company’s biggest sales driver, accounting for more than half of the total revenue.
Meanwhile, Apple is facing potential trouble from Trump’s tariffs on imports from China, Canada and Mexico.
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A significant portion of Apple’s products are assembled in and shipped from China. The tariffs could mean iPhones shipped from the region will cost more.
This could force Apple to either raise iPhone prices, potentially damping consumer demand, or absorb the expense, which would pressure its profit margins.
Bank of America analysts led by Wamsi Mohan said the tariff’s effect was “manageable” as Apple could mitigate the effects by adjusting supply chains and pricing strategies.
Mohan pointed to Apple’s ability to shift production outside China. “Most iPhone models can now be manufactured in India,” he said.
Analyst unveils Apple stock price target after the delay
Citi analyst Atif Malik removed the firm’s “90-day positive catalyst watch” on Apple shares after the delay in the AI feature rollout.
“Given the delays in the highly anticipated major Siri update, we believe Apple will miss the opportunity to drive up [the] refreshment cycle this year,” the analyst wrote.
The firm reiterated a buy rating with a $275 price target.
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Citi also lowered its estimate for Apple’s iPhone sales for 2025 to 232 million, representing 2% growth from the prior year. The latest estimate is down from an earlier call of 5%.
The investment firm says, however, that Apple is progressing in rolling out Apple Intelligence in China.
Apple stock at last check was trading off about 5%, around $227 a share, on March 10. It is down 10% year-to-date.
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