In the face of disappointing iPhone sales in China, Apple (AAPL) stock reached its lowest level of the year on Tuesday. The tech giant is facing pressure on multiple fronts, raising questions about how major investor Warren Buffett will respond to these challenges.

Year to date, Apple stock has experienced a decline of over 11%, while the S&P 500 saw a gain of nearly 7%. On Monday, the stock slipped by 2.5% after European Union regulators fined Apple approximately $2 billion for violating antitrust rules with its App Store policies.

During afternoon trades on Tuesday, Apple stock plummeted by more than 2.6% to reach 170.40, following disappointing iPhone sales data from China. Counterpoint Research, a market research firm, reported that Apple iPhone unit sales in China dropped by 24% in the first six weeks of 2024 compared to the same period last year. In contrast, sales for China-based competitor Huawei jumped by 64%.

Counterpoint analyst Mengmeng Zhang highlighted the stiff competition Apple is facing in the premium smartphone segment from a resurgent Huawei with its Mate 60 series devices. Additionally, Apple is feeling the pressure in the midrange handset market due to aggressive pricing by domestic vendors Oppo, Vivo, and Xiaomi.

Further adding to the negative sentiment surrounding Apple, Taiwan-based contract manufacturer Foxconn, responsible for assembling iPhones, reported a 12% dip in February sales. This decline indicates a slowdown in Apple product sales.

According to Wedbush Securities analyst Daniel Ives, sentiment regarding Apple stock is currently "dismal" as the company appears to be missing out on the AI revolution that is captivating Wall Street. However, Ives maintains an outperform rating on Apple stock and has set a 12-month price target of 250.

Looking ahead, Ives believes that sentiment in Apple stock could improve around the company's Worldwide Developers Conference in June, where they are expected to discuss their AI innovations. Ives acknowledges the challenges Apple is currently facing but remains optimistic about navigating these hurdles in the next few quarters.

Meanwhile, Jordan Klein, managing director for tech, media, and telecom sector trading at Mizuho Securities, ponders Warren Buffett's stance on his firm's significant stake in Apple. Berkshire Hathaway owns nearly 6% of Apple, amounting to 905 million shares. Klein speculates that if Buffett were to sell his stake, it could significantly impact AAPL sentiment and the stock price.

Apple's recent decision to end development of an autonomous electric car and the release of a "not-yet-ready-for-prime time Vision Pro" computer headset have diminished its reputation as an innovator, according to Rosenblatt Securities analyst Barton Crockett. Crockett suggests that Apple will need to introduce impressive generative AI innovations to regain its previous shine. He rates Apple stock as neutral, with a price target of 189.

As Apple grapples with weak iPhone sales in China and other challenges, the company will need to regain momentum by leveraging AI capabilities and delivering innovative products to reassure investors and attract consumers.