Apple Stock: Major Sell-Off Amid China Woes and Berkshire Exit

Apple's stock faces mounting pressure at the start of the abbreviated US trading week, extending its challenging beginning to the year with an 8% decline in value. The tech giant's troubles are particularly evident in the Chinese market, where iPhone sales have plummeted by approximately 18%. This significant downturn has prompted investment bank Jefferies to downgrade Apple's stock from "Hold" to "Underperform," setting a new price target of $200.75. The pessimistic outlook stems from weakening demand in consumer electronics and concerns about the adoption rate of AI features in future iPhone generations.

Berkshire's Strategic Shift

In a notable development, Berkshire Hathaway has substantially reduced its long-standing core position in Apple, cutting its holdings by roughly two-thirds to 300 million shares. While this strategic realignment has attracted significant attention in financial circles and occurs amid broader challenges in the technology sector, the investment firm is expected to maintain Apple as its largest stock position. Market participants are closely monitoring upcoming quarterly results for further insights into potential additional share sales.