Bank of America has sharply revised its outlook on Apple (AAPL), downgrading the stock following a significant shift in the company’s product roadmap and market positioning. The move signals growing concern over near-term revenue growth and competitive pressures in key segments.
- Bank of America downgraded AAPL to 'underperform' from 'neutral' on January 14, 2026
- 12-month price target reduced to $160 from $195, a 18% cut
- iPhone sales declined 3% year-over-year in Q4 2025
- Services revenue growth slowed to 6% YoY
- Pre-market stock drop of 2.3% following the downgrade
- Increased competitive pressure in premium smartphone segment
Bank of America has issued a bearish revision on Apple Inc. (AAPL), downgrading the stock to 'underperform' from 'neutral' in a report dated January 14, 2026. The decision follows a reassessment of Apple’s upcoming product strategy, particularly around the anticipated release of the iPhone 18 series and the delayed rollout of its AI-integrated ecosystem features. Analysts cited weakening upgrade cycles in mature markets and increased competition from Samsung and Chinese OEMs in the premium smartphone segment. The firm adjusted its 12-month price target for AAPL to $160 from $195, reflecting a 18% downward revision. This implies a potential 12% decline from current levels as of early January 2026, when the stock traded around $182. Bank of America noted that Apple’s services revenue growth—previously a key growth driver—has slowed to 6% year-over-year, down from 12% in the same period of 2024. Market reaction has been immediate, with AAPL shares dropping 2.3% in pre-market trading. The downgrade impacts institutional investors and index funds tracking large-cap tech stocks, particularly those with significant AAPL weighting. The move also affects sentiment around the broader consumer electronics sector, with peers like Broadcom and Qualcomm seeing modest declines. Apple’s recent Q4 earnings report, released on January 8, 2026, showed revenue of $92.6 billion, slightly below expectations, with iPhone sales declining 3% YoY. The company attributed this to a weaker-than-expected performance in China and inventory adjustments in retail channels.