In a recent development, a Wall Street investment firm has lowered its price target for Apple (AAPL) stock due to weakening demand, particularly in China. Loop Capital analyst Ananda Baruah maintained a hold rating on Apple stock but revised the price target from $185 to $170, reflecting concerns over decreased iPhone orders.

As a result of this news, Apple stock experienced a decline of 0.9% in morning trades, falling to $169.99. Baruah highlighted that, based on current projections, Apple's overall revenue and earnings per share (EPS) are expected to decline in 2024, marking the first time since 2016.

Baruah further expressed concerns about the consensus estimates for Apple's March-quarter results, stating that they are at "some risk." Additionally, Street estimates for Apple's June quarter are facing a "material risk" due to soft iPhone unit shipments. Baruah attributed these weak sales figures to both organic demand issues and heightened competition in the market.

A notable observation made by Baruah is that Apple is experiencing a flattening trend in average selling prices for its iPhones. This shift in pricing dynamics could impact Apple's profitability and market position.

Notably, Apple is facing significant rivalry from domestic brands such as Huawei and Xiaomi in China. Baruah emphasized the stiff competition in the Chinese smartphone market as a contributing factor to the reduced iPhone orders.

On a positive note, Baruah mentioned that potential catalysts for Apple stock could arise from advancements in generative artificial intelligence and the release of the Vision Pro headset.

In a related report, Loop Capital analyst John Donovan revealed that the firm's supply chain checks in Asia indicate a sharp reduction in Apple's iPhone builds. Apple has revised its iPhone orders forecast for 2024, now expecting 199 million units, down approximately 7% to 8% from previous targets.

Year to date, Apple stock has experienced a downturn, witnessing a decline of over 11%. The reduced price target and weakened iPhone orders only add to the challenges faced by the tech giant as it navigates an increasingly competitive market.

It remains to be seen how Apple will address these concerns and regain its footing in the global smartphone industry, particularly in the crucial Chinese market.