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Apple (AAPL) is again in the spotlight following a stunning price target downgrade by one of its loudest cheerleaders. Wedbush’s Dan Ives, previously perhaps the biggest bull on the iPhone manufacturer, cut his 12-month target to $250 from $325, due to “tariff Armageddon” and softening demand, especially in China. Apple’s stock price responded in kind, falling 20% over the last five sessions and dipping nearly 31% below its all-time high.
The shift comes in the face of growing U.S.–China tensions, as President Donald Trump’s planned tariff policies risk upsetting supply chains globally.
As over 90% of iPhones remain assembled in China, Apple may experience both increasing production prices and decreased demand among consumers in the world’s largest overseas market. Apple’s deep selloff highlights the company’s vulnerability to geopolitical risk.
About Apple Stock
Apple (AAPL) produces and designs consumer electronics and software products in the form of the iPhone, iPad, MacBook, and wearables and operates high-margin digital businesses like iCloud and Apple Music. Apple is headquartered in Cupertino, California, and boasts a huge market cap of $2.70 trillion.
Apple’s shares have fallen nearly 31% below their 52-week high of $260.10, closing April 7 at just $180.53.
Its forward price-earnings multiple is 25.94x, while the price-sales ratio is 7.24x. These figures represent a premium valuation compared to peers in the hardware group, buttressed by the firm’s stable margins, brand value, and recurring service revenues. Nevertheless, it may be less defensible if growth slows and trade expenses escalate.
Apple Stock Beat on Q1 2025 Earnings
Apple reported strong top-line results in its fiscal Q1 2025, with revenue hitting $124.3 billion compared to $119.6 billion in the prior-year quarter, growing year-over-year by almost 4%. Net income totaled $36.3 billion, 7.1% higher compared to the prior-year quarter. Diluted earnings per share of $2.40 beat both last year’s $2.18 and estimates of $2.13. Gross margin expanded to $58.3 billion, indicating strong profitability in both its hardware and services divisions, as services revenue grew 13.9% to $26.3 billion. Importantly, sales of iPads and Macs were strong, while iPhone revenue dipped slightly to $69.1 billion from $69.7 billion, indicating further maturation of Apple’s flagship product.
Despite the strong results, the geographic breakdown raised investor concerns.
Revenue from Greater China fell 11% year-over-year to $18.5 billion, down from $20.8 billion, reflecting demand softness in a key market amid competitive pressures from domestic brands and growing geopolitical friction. Although revenue in the Americas and Europe grew by 4.4% and 11.4%, respectively, Apple's performance in Asia remains under pressure. Management noted that foreign exchange headwinds and macroeconomic uncertainty in China continue to weigh on top-line performance, particularly in hardware sales.
What Do Analysts Expect for Apple Stock?
Apple earns a “Moderate Buy” consensus recommendation based on 36 analysts. The latest breakdown shows 18 analysts rating the stock a “Strong Buy,” four as “Moderate Buy,” 10 as “Hold,” and four assigning “Sell”-equivalent ratings. The overall rating has held steady over the past three months, with a consistent average of 3.92 out of 5, reflecting measured confidence despite emerging macro risks.
Apple’s mean price target remains $250, representing a potential upside of 42% from the current share price. Dan Ives’ recent downward revision aligns with growing concerns over tariffs and China demand, though many analysts continue to back Apple’s fundamentals, including its strong cash flow, recurring service revenue, and high-margin ecosystem.
