Apple Stock: TikTok Ban Concerns Impact Growth Outlook

The recent Supreme Court decision upholding legislation requiring TikTok's separation from ByteDance could significantly impact Apple's business landscape. The enforcement would compel Apple to remove TikTok from its App Store, with market observers estimating an 80% probability of a TikTok ban. This development poses potential revenue challenges for Apple's App Store business, though it might benefit alternative platforms like Instagram Reels and YouTube Shorts on iOS devices. Meanwhile, the stock showed resilience with a modest 0.5% gain to $224.72, though remaining notably below its December peak of $260.09. The Bank of America has adjusted its outlook, reducing its price target from $256 to $253.

iPhone Sales Forecast Adjustment

Analysts have significantly downgraded their iPhone shipment expectations for the March quarter to 49 million units, falling short of the previous 56 million estimate and market consensus of 52 million devices. Looking ahead, projections for fiscal years 2025 and 2026 have been revised to 229 million and 246 million iPhones respectively. Despite these adjustments, the overall outlook remains cautiously optimistic, supported by expectations of stable margins and robust cash flow performance.