📈📢Is #Apple heading towards the abyss?

📌The year started off badly for #Apple — its stocks fell by more than 9%, while the Nasdaq index grew by 2.75% over the same period. Did #WarrenBuffett know something when he was selling Apple stocks all last year, and will it only get worse?

▶️The main reason is the declining demand for #iPhones in China, leading Apple to offer discounts. Additionally, there's a looming trade war threat between China and the US (it's no coincidence #TimCook had a stern face at the inauguration).

▶️By the way, sales in "Greater China" (PRC, Hong Kong, Macau, and Taiwan) accounted for 17% of the company's revenue in the 2024 fiscal year. For comparison, the US accounts for 36%. In Q1 2025, revenue from China is expected to be around $21.7 billion. Losing this market would be quite painful.

➡️What's the outcome?

✅️The primary risk for Apple is geopolitics. We can only hope that integrating #AI services into the iPhone will boost sales. However, it didn't help #Microsoft, and there's no guarantee it will help Apple.

✅️On the other hand, the services segment continues to grow. Apple Pay, Apple Card, iCloud, and other services now generate more revenue ($24.9 billion in Q4, or 26%) than Mac, iPad, wearables, home electronics, and accessories combined.

✅️If this segment keeps growing, it might offset the decline in iPhone sales. As for stock price forecasts, they vary: 
➡️Morgan Stanley — $273, 
➡️Goldman Sachs — $280, 
➡️JP Morgan — $260, 
➡️Wells Fargo — $275, 
➡️Barclays — $183.

And us?

We secured part of our Apple position in December, but we remain optimistic about the company's future. So, if Apple's stock continues to fall on the news, we might buy more Big Tech shares. Keep an eye on our moves.

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