In China, Apple’s second largest market, iPhone sales fell 18% in the December ending quarter, according to Bloomberg.

Jefferies downgrades Apple’s stock, taking a cautious view on the next couple of quarters and on broader AI demand. Plus, Counterpoint Research notes sluggish China performance.

Apple is known for selling popular hardware devices. The iPhone, which today represents about half of overall sales, even though it's a product in its 16th iteration, still essentially drives financial performance. However, the company has also developed and found smashing success with the MacBook, iPad, AirPods, and Watch.

Apple (NASDAQ:AAPL) shares have been a major winner over the past decade. And while I’ve resisted the temptation to sell as negative headlines flowed in, primarily regarding weaker iPhone sales, I do think the stakes are getting higher in 2025.

Phone growth in the U.S. and the rest of the world offsets softer sales in China, Wedbush analyst Daniel Ives says.

Apple (AAPL), and the stock has lost over 11% so far, extending its drawdown from all-time highs to over 14%. It also lost its status as the world’s largest company to Nvidia (NVDA), whose share have looked unstoppable over the last few years.

Doug and Lee examined Apple's decreasing stock performance, pointing out as main causes of investor unhappiness dismal iPhone 16 sales in China, AI losses, and criticism about the company's lack of recent innovation.

Apple shares are close to key support. Breaking below $217 would bring $208 into play, according to technical stock market analysts.