Counterpoint Research has cut growth expectations for global smartphone shipments in 2025 to 1.9% on Wednesday, down from 4.2% previously, citing Trump administration tariff-related uncertainties.
The firm also revised shipment growth from China down to near flat and expects Apple Inc (NASDAQ:AAPL) and Samsung Electronics (OTC:SSNLF) shipments to slow as the companies pass the cost burden on consumers.
President Trump announced a series of tariffs on its trading partners on April 2 to encourage manufacturing in the U.S.
Also Read: Apple Tops Global Smartphone Sales With 19% Share, Boosted By iPhone 16e, Emerging Market Growth
On May 12, Beijing and Washington agreed to lower tariffs on each other’s products, temporarily offering relief to the stock market. The deal reduced U.S. levies of 145% on most Chinese imports to 30%, while China’s 125% duties on U.S. goods will drop to 10% for 90 days.
Last week, International Data Corporation (IDC) in its research report cut the 2025 global smartphone shipment growth outlook to 0.6% from 2.3%.
IDC expects China smartphone shipments to grow by 3% in 2025, driven by government subsidies.
In contrast, Apple is forecast to decline 1.9% in 2025 due to ongoing competition from Huawei, the overall economic slowdown, and the lack of subsidies for most of its models.
IDC expects the U.S. smartphone shipment to grow 1.9% in 2025, down from 3.3% in 2017, due to increased uncertainty and tariff-related price increases.
Meanwhile, Deepwater Research’s Gene Munster estimated that Apple has about two years to perfect its AI strategy, but it will require increased investments.
The AI features of smartphones are the key deciding factor determining their prospects.
Apple Stock Prediction For 2025
Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Apple have an average 1-year price target of $238.79, representing an expected upside of 17.47%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 3 analysts have bearish recommendations on Apple, while 21 analysts have bullish ratings. The street high price target from Wedbush is $325.0, while the street low from Jefferies is $167.88.
APPL Price Action: Apple stock is down 0.50% to $202.26 premarket at last check Tuesday.
Read Next:
Image by Wongsakorn 2468 via Shutterstock
Recent Comments