Apple (AAPL) stock forecast took a hit as Morgan Stanley (MS) cut its price target. Analyst Erik Woodring of Morgan Stanley reduced the price target on AAPL stock to $252 from $275 yesterday, citing weak iPhone demand due to delays in advanced Siri upgrades. Despite the cut, the analyst maintained an Overweight (equivalent to Buy) rating on the stock.
Importantly, on March 7, Apple announced a delay in key AI upgrades for its Siri voice assistant, potentially extending into 2026. Since the announcement, Apple’s stock has dropped by about 9.24% and 7% over the past five days.
Woodring’s Views on AAPL Stock
Woodring pointed to the delayed rollout of an advanced Siri as a key concern. He said that an upgraded Siri is the “#1 AI feature prospective iPhone upgraders are interested in when upgrading.” Without it, iPhone sales could remain sluggish.
Also, the analysts warned that tariffs on Chinese goods will impact Apple’s profits. While Apple is working to reduce these costs, the firm noted that it is “unlikely that Apple can fully offset this cost without broad tariff exemptions, which have not been granted.”
As a result, Morgan Stanley has lowered its Apple iPhone sales forecasts for 2025 and 2026, cutting estimates by 1% and 5%, respectively. The analyst now expect flat sales of 230 million units in 2025 and 6% growth to 243 million units in 2026, citing a “flatter replacement cycle curve.”
With lower iPhone sales and tariff costs, Woodring reduced Apple’s FY26 revenue and earnings estimates by 5%-6%, expecting $436 billion in revenue and $8 per share, slightly below market forecasts.
Is Apple a Buy, Sell, or Hold?
The stock of Apple has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 18 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $250.20 implies 15.31% upside from current levels.
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