Apple Inc (NASDAQ: AAPL) recently saw a significant 4% decrease in its stock value after a downgrade from Barclays. The downgrade was based on concerns of disappointing sales of the iPhone 15.
This decline raises concerns not only in the short term but also suggests a wider issue that may impact future hardware releases, such as the iPhone 16. The sales performance of the iPhone 15 is crucial as it sets the tone for the market's reception of future models.
Concerns about iPhone sales in China have been raised since at least October. Reports indicate that the Chinese government has informally discouraged state employees from using iPhones. Although the Chinese government has denied these allegations, the mere existence of such reports can significantly impact consumer and investor confidence.
Apple's stock is currently facing a tough phase, both technically and financially. The stock is approaching a crucial support level at $182, a significant figure that dates back to January 2022. If this support level falters, the next critical point to watch out for is at $179, which aligns with the daily 200 simple moving average.
The stock has demonstrated volatility in its recent performance. On December 14th, it came close to reaching the significant $200 mark, falling just short by a dollar. Since then, the stock has experienced a decline of over 7%.
However, it is worth noting that the stock ended 2023 with a strong performance, recording a 47% increase. Currently in 2024, the stock has declined by over 4%.
Investors are closely monitoring the stock's behavior at its current support level. If this level holds, there's a chance for the stock to bounce back and make a strong push towards breaking the $200 threshold. This would be a noteworthy development, potentially reshaping the current narrative surrounding Apple's market performance and future prospects.
After the closing bell on Tuesday, January 2, the stock closed at $185.64, trading down by 3.62%.