TLDR
- Apple has delayed the rollout of AI updates to Siri that were expected in April/May 2025
- Citi analysts lowered iPhone sales growth forecast from 5% to 2% for 2025 due to this delay
- The expected 2025 iPhone sales are now 232 million units
- Apple stock fell 4.85% to $227.54 on Monday, March 10
- The tech sector overall experienced a significant selloff with the Nasdaq falling 3% into correction territory
Apple’s stock took a substantial hit on Monday as the company announced a delay in rolling out artificial intelligence upgrades to Siri. The news prompted analysts to cut sales forecasts and contributed to a broader tech selloff.
Shares of the iPhone maker dropped 4.85% to close at $227.54 on March 10, extending the company’s year-to-date decline to 6.9%.
The selloff came after Apple revealed it would postpone promised AI updates to its Siri voice assistant. The company now expects to roll out these features “in the coming year” rather than alongside the iOS 18.4 software update expected in April or May.
This delay has caused Citi analysts to revise their iPhone sales projections downward. Atif Malik and his team now expect Apple to sell 232 million iPhones in calendar year 2025.
This represents a 2% growth from the prior year, down from their earlier estimate of 5% growth. Despite the lowered sales forecast, Citi maintained its Buy rating on Apple stock with a price target of $275.
“Given the delays in the highly anticipated major Siri update, we believe Apple will miss the opportunity to drive up refreshment cycle this year,” Malik wrote in his report. The analyst also removed the stock from Citi’s “Positive Catalyst Watch” list.
The enhanced Siri was expected to be a major selling point for new iPhones. Apple had previously announced that the updated assistant would be able to tap into users’ personal information to answer queries and take actions across apps.
iPhone sales make up the majority of Apple’s revenue. For the 2024 fiscal year that ended in September, Apple sold 4.4% fewer iPhone units compared to the previous year, according to FactSet data.
The Siri update delay comes at a challenging time for Apple. The company has been working to incorporate AI features into its products to compete with rivals who have moved more quickly in this space.
Monday’s stock decline occurred amid a broader market downturn. The tech-heavy Nasdaq fell 3% into correction territory, while the S&P 500 posted a 2% decline.
Concerns over ongoing trade tensions contributed to market jitters. President Trump addressed recession worries over the weekend, calling the market struggle “a period of transition,” but these comments did little to calm investor concerns.
Apple stock has shown considerable volatility over the past year, with 20 moves greater than 2.5%. At its current price, the stock is trading 12.4% below its 52-week high of $259.02 reached in December 2024.
Apple has delivered strong returns for investors
Despite recent declines, Apple has delivered strong long-term returns for investors. A $1,000 investment in Apple shares five years ago would now be worth approximately $3,181.
The company has been pursuing AI partnerships globally. Reuters recently reported that Apple was teaming up with Alibaba to launch AI features for iPhone users in China.
This partnership could provide clarity on the company’s timeline for rolling out AI features, addressing concerns about increasing competition in the smartphone market.
Analysts will be watching closely for any updates on the new Siri rollout timeline. The delay may impact not only iPhone sales but also Apple’s position in the competitive AI landscape.
The company has not provided a specific date for when the Siri improvements will be available. The lack of clarity on timing has added to investor uncertainty about Apple’s AI strategy.
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