Morgan Stanley has reduced its price target for Apple (AAPL) stock, citing delays in AI-driven Siri upgrades and potential tariff headwinds that could impact iPhone sales.
Price Target Cut to $252, Stock Declines
Analyst Erik Woodring maintained an overweight rating on Apple but lowered the price target from $275 to $252. Following the announcement, Apple shares fell 1.8% to $216.98 in Wednesday’s trading session.
Siri Delays and Tariff Risks Weigh on iPhone Outlook
Woodring noted that Apple’s delayed rollout of an advanced Siri AI assistant will likely slow iPhone upgrade rates in fiscal 2026. Additionally, he factored in “a degree of tariff headwinds” in 2025, prompting him to trim iPhone shipment forecasts for 2025 and 2026 by 1% to 5%.
He now expects flat iPhone shipments of 230 million units in 2024, with a 6% increase to 243 million units in 2025. Consequently, he also reduced his fiscal 2026 revenue and EPS estimates by 5% to 6%.
AI Hesitation Hurts Apple’s Momentum
Bloomberg recently reported that Apple is delaying its AI-powered Siri upgrade, a feature Woodring identified as the top AI enhancement that could drive iPhone upgrades. Since the report, Apple’s stock has declined for three straight sessions.
Despite the concerns, Apple remains on the IBD Tech Leaders list, indicating continued investor confidence in its long-term prospects.
