Morgan Stanley slashes AAPL cost target to$ 252 on lower phone switch level concerns

Improved Siri’s later appearance will weigh on Apple investment, says Morgan Stanley
A noted analyst has slashed his desire for Apple investment by about 10 % given what he sees to be slower phone switch rates because of taxes, and a delayed Siri with Apple Intelligence implementation. &# 13, In a statement to shareholders written by Morgan Stanley’s Erik Woodring, Apple’s challenges have been re-evaluated. The most recent anxieties for Apple’s middle range appear to be the delay of Siri updates, higher goods trade expenses because of Trump administration taxes, with both leading to lower earnings per share. &# 13, While Woodring remains optimistic on what may be a modified phone 17 generating income, he’s less sure about various strategies of success. He’s decreased calendar year 2025 phone shipping a little, with profits in 2025 being straight year-over-year, as opposed to an increase. &# 13, The analyst appears to be leaning on a survey that they ran, citing “access to advanced AI features” as a driver of smartphone sales. We’re not sure how appropriate this is, given study biases for studies like this have historically tended to be toward the higher-end of phone sales, versus the larger business that has generally not cared if they have the newest features or not. &# 13, Woodring feels that the switch cycle will continue to extend given Apple’s rushed — and occasionally delayed — Apple Intelligence have roll-out. He does finally expect a recession, but not until the 2027-2028 period time, and therefore not related to Wednesday’s price target trim. &# 13, As far as the impact of tariffs will apply to Apple, that remains fluid. Woodring assumes that Apple will get hit by$ 2 billion in product costs. &# 13, He’s no obvious if the company will raise rates to offset that. Given that exporting countries don’t give the taxes, and importing organizations do, it’s not out of the problem. &# 13, In the short term, Woodring believes that$ 200 is the absolute floor for Apple stock. The lower limit in the short term is$ 250— just short of the brand-new$ 252 goal. &# 13, Morgan Stanley’s last price target for Apple stock was set just after earnings, at$ 275. Woodring said finally that iOS 18.4 in April was an “important motivator” looking ahead for phone sales. &# 13, At the time, that release was expected to have the upgraded Siri and help for many cultures, thus expanding the need for the phone in the newly-supported places. The release will arrive on time, but the upgraded Siri has been delayed. &# 13, Since the January statement, Apple property has been almost flat. It peaked at only over$ 247 in late February. However, increased saber-rattling about tax software and other elements weighing on the market have bled off all the benefits since the better-than-expected income. &# 13, Apple stock is down$ 2 on the price target decrease, and fears about the global economy as a whole. 

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