A Shocking Apple AI Delay Hits the Stock
Apple stock price drop: AAPL fell 5.2% on March 10 after delaying its highly anticipated AI-powered Siri update. The AI enhancements, originally expected in April, are now postponed until “the coming year.”
The delay was confirmed by Apple spokesperson Jacqueline Roy, who attributed it to difficulties in creating a more contextually aware and personalized Siri with improved app integration. Investors were shaken by the news, as Apple’s stock price dropped to $225 a share, down 10% so far this year.
Apple’s issues are made worse by Trump’s tariffs and economic pressures.
The AI delay is not the only thing affecting Apple’s stock price. Macroeconomic pressures, Trump’s tariffs, and market sell-offs have all contributed to recent volatility.
- Tech Selloff: The Nasdaq 100 fell as a result of Nvidia’s (NVDA) subpar February earnings.
- Tariff Uncertainty: Trump’s import taxes on Canada, Mexico, and China could increase Apple’s manufacturing costs.
- Challenges in the Employment Market: The little uptick in the U.S. unemployment rate to 4.1% in February was a sign of economic uncertainty.
More problems are brought up by the drop in iPhone sales.
Apple’s fiscal Q1 2025 earnings, released on January 30, showed a nearly 1% decline in iPhone sales. Even while more than half of Apple’s sales are still iPhones, investors are concerned about the slowdown, especially in light of potential price increases linked to tariffs.
Analysts React: What’s Next for Apple Stock (AAPL)?
Following the AI delay, Citi analyst Atif Malik removed Apple from the firm’s “90-day positive catalyst watch.”
Citi’s New iPhone Forecast: Expected sales for 2025 were cut to 232 million units, reflecting just 2% growth (down from 5%).
Apple Intelligence in China: Apple is still introducing AI features in China in spite of obstacles in the US.
Citi keeps its price target at $275 while warning of impending volatility.
Finally, is buying Apple stock a smart move for me?
Apple’s short-term picture is uncertain due to worries about tariffs, AI delays, and declining iPhone sales. Long-term investors, however, might still see room for expansion in Apple Intelligence and its developing AI ecosystem.
Source: The Street
