Wall Street firm lowers Apple rating over weaker iPhone sales

Wall Street firm Loop Capital has lowered its rating on Apple from "Buy" to "Hold." The firm says Apple is unlikely to make up about 13 million iPhone shipments that were cut from its plans for the second half of 2026. It also cut its price target for Apple stock from $370 to $330.

What changed

Loop had believed that shortages of memory and processors only delayed some iPhone shipments, and that Apple would catch up in 2027. After new checks with the supply chain, it dropped that assumption. A "Hold" rating is a more neutral view than "Buy." A price target is the level the analyst thinks the stock could reach.

The numbers

• December quarter: Loop now expects 79 million iPhones, down from 85 million.
• Average selling price: forecast cut from $1,239 to $1,123.
• 2027 shipments: now 260 million, more than Loop expected before.
• 2027 iPhone revenue: cut from $315 billion to $285 billion.

In short, Loop thinks Apple may sell more phones in 2027, but at lower prices on average. It also warns that rising memory costs could squeeze Apple's profits.

The split launch

Apple's launch schedule makes the picture harder to read. The iPhone 18 Pro models arrived in September, and the iPhone Duo launches October 23. The standard iPhone 18, the iPhone 18e and the iPhone Air 2 are not expected until spring 2027.

Counterpoint Research blamed much of Apple's third-quarter shipment decline on the missing standard model. Even so, Apple reached a record third-quarter market share of 22%. Global smartphone shipments fell 20% year over year.

What it means for you

If you own Apple stock, this is one firm's opinion, not a result from Apple. Other analysts may see it differently. If you plan to buy a new iPhone, the timing matters. Anyone waiting for the standard iPhone 18 should expect to wait until spring 2027.