Apple (AAPL) stock has been downgraded by two Wall Street analysts, citing concerns over the tech giant’s lackluster product innovation and slow progress in artificial intelligence (AI). These downgrades followed Apple’s “Awe-Dropping” launch event on September 9, where it introduced the iPhone 17 lineup. However, the launch failed to impress investors and analysts.
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DA Davidson Downgrades Apple to Neutral
Analyst Gil Luria of DA Davidson downgraded AAPL stock to Hold from Buy, maintaining a price target of $250. He noted that initial optimism about Apple’s potential role in AI and a major upgrade cycle has faded, especially after recent product announcements that failed to impress.
Luria pointed to the iPhone 16 and the newly announced iPhone 17 and iPhone Air as examples of incremental updates that lack the wow factor needed to drive a meaningful upgrade cycle.
“We are left unimpressed,” he concluded, “until the company can either truly innovate within its core lineup or introduce a new product category that drives growth.”
Phillip Securities Lowers Rating to Sell
Helena Wang of Phillip Securities took a more bearish stance, downgrading Apple to Sell from Hold with a $200 price target. Wang’s downgrade was driven by valuation concerns following a recent share price rally, as well as broader macro and strategic headwinds.
She maintains a cautious outlook, pointing to ongoing challenges such as tariffs, elevated capital expenditures, and continued weakness in Apple’s product lineup and performance in China.
In-House N1 Chip Signals AAPL’s Push for Efficiency
Despite analyst concerns over innovation, Apple’s introduction of the in-house N1 chip in the iPhone 17 lineup marks a strategic shift away from third-party suppliers such as Broadcom (AVGO).
The chip supports Wi-Fi 7, Bluetooth 6, and Thread, enabling faster connectivity, lower latency, and improved smart home compatibility. By designing the N1 chip internally, Apple aims to boost performance and reliability across key features such as AirDrop and Personal Hotspot.
The in-house chip is expected to help Apple gain more control over performance, integration, and cost efficiency.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, Apple stock has a Moderate Buy consensus rating based on 15 Buys, 14 Holds, and two Sells assigned in the last three months. At $242.27, the average AAPL stock price target implies a 6.02% upside potential.
