Apple Faces Growth Constraints as Analysts Cite Market Headwinds

Apple (NASDAQ:AAPL) tumbles amid tariff and Services revenue headwinds, down roughly 17% year-to-date despite the U.S.China trade deal.

Despite favorable bilateral terms, analysts warn that lingering tariff uncertainties, macro pressures on consumer spending and fierce smartphone competition have crimped growth, while Services revenue in the March quarter fell short of expectations.

Morgan Stanley’s Eric Woodring reiterated a Buy rating with a $235 price target, noting Apple is the most under-owned mega-cap stock among large institutionsits active institutional weight has slid to 4.86% versus a 6.9% S&P 500 weightand he sees meaningful iPhone upgrade cycles ahead but cautions that litigation risks, tariff swings and absent Services guidance for the June quarter could limit near-term upside.

Evercore’s Amit Daryanani also stands by a Buy and $250 target, arguing that Apple’s Services businessonce a margin juggernautis under fresh scrutiny amid legal disputes with Epic Games and uncertainty over Google’s default-search payment; any favorable court ruling or tariff relief, he says, could spur a substantial rally.

By contrast, Phillip Securities analyst Helena Wang cut her target to $200 and maintained a Hold, citing margin erosion from tariffs, elevated capex requirements and ongoing weakness in product demand, especially in China.

Why It Matters: With Apple’s core hardware business facing cyclical and geopolitical pressures and Services growth under legal shadow, the stock’s path forward hinges on resolution of those risks and clarity on guidance

This article first appeared on GuruFocus.