Apple Sheds $100 Billion in Market Cap as Barclays Predicts 'Lacklustre' iPhone 16: Report

Barclays has also highlighted soft demand for the iPhone 15 series and challenges facing Apple in China such as the resurgence of its rival Huawei.

Written by David Delima, Edited by Siddharth Suvarna | Updated: 3 January 2024 12:25 IST

Apple Sheds $100 Billion in Market Cap as Barclays Predicts 'Lacklustre' iPhone 16: Report

The successor to the iPhone 15 Pro Max (pictured) is likely to be announced later this year

Highlights

Apple's stock has been downgraded by Barclays to "underweight"
The ensuing stock rout erased over $100 billion of Apple's market cap
Apple is expected to announce new iPhone, iPad, and Mac computers in 2024

Apple shares closed 3.58 percent lower on Tuesday — the biggest fall in four months — after Barclays downgraded the company's shares to "underweight" and price target by $1 (roughly Rs. 83) on concerns over soft demand for the company's purported iPhone 16 and upcoming Mac computers, as well as a crackdown in China on devices manufactured by external firms. The iPhone maker is tipped to launch several new devices this year, including new iPad models.

Reuters reports that Barclays downgraded Apple's stock from "neutral" to "underweight" while lowering the price target from $161 (roughly Rs. 13,400) to $160 (roughly Rs. 13,300). Over $100 billion (roughly Rs. 8,33,210 crore) of Apple's market value was erased after the brokerage's bearish outlook on the stock — the company's shares closed at a seven month-low at $185.64 (roughly Rs. 15,500) on Tuesday.

Barclays analyst Tim Long pointed to soft demand for the company's latest iPhone models as well as the challenges facing the company in markets like China, including a government crackdown and the resurgence of Huawei. "The iPhone 15 has been lacklustre, and we believe iPhone 16 should be the same," Long said in a client note seen by Reuters.

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Last year, Apple unveiled the iPhone 15 series of smartphones with hardware improvements over the preceding models, including a USB Type-C port mandated by EU regulations, and a 3nm A17 Pro chip along with an Action button that replaced the mute switch on the more expensive models that are housed in a new titanium body.

Bloomberg's Mark Gurman recently predicted that the firm's iPhone 16 models will be equipped with a dedicated "capture" button that can be used to quickly launch the camera app and record videos. The successors to the iPhone 15 Pro and iPhone 15 Pro Max will also sport larger displays, according to Gurman — the latest models are equipped with 6.1-inch and 6.7-inch Super Retina XDR OLED displays, respectively.

Apple is also working on adding several artificial intelligence (AI) features to its iOS 18 operating system, according to Gurman, who says the company hopes the software features will help sell the purported iPhone 16 series that lacks major hardware upgrades. As the company's next phones aren't expected to introduce extensive hardware upgrades, the iOS 18 update would need to be "extra impressive" to convince buyers to upgrade to this year's models, according to the journalist.

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iPhone 15

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Big upgrades over the 14
Excellent ergonomics, build quality
Very good all-round performance
Apple ecosystem benefits

Bad
Relatively slow charging
Expensive
Still a 60Hz display

Read detailed Apple iPhone 15 review

Display 6.10-inch

Processor Apple A16 Bionic

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 6GB

Storage 128GB, 256GB, 512GB

OS iOS 17

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

Apple iPhone 15 Pro

KEY SPECS
NEWS

Display 6.10-inch

Processor Apple A17 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 17

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

Apple iPhone 15 Pro Max

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Excellent display
USB Type-C
AAA gaming
Excellent all-round performance
Good primary and telephoto camera
Customisable Action Button

Bad
Gets hot quickly when stressed
Slow wired charging
Expensive

Read detailed Apple iPhone 15 Pro Max review

Display 6.70-inch

Processor Apple A17 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 12-megapixel

RAM 8GB

Storage 256GB, 512GB, 1TB

OS iOS 17

Resolution 1290x2796 pixels

More Apple mobiles Apple mobiles price in India

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Further reading: iPhone 16, Apple, iPhone 15, iPhone, China, Barclays

David Delima

Email David Delima

As a writer on technology with Gadgets 360, David Delima is interested in open-source technology, cybersecurity, consumer privacy, and loves to read and write about how the Internet works. David can be contacted via email at DavidD@ndtv.com, on Twitter at @DxDavey, and Mastodon at mstdn.social/@delima. More