Loop Capital Cuts Apple Rating Over iPhone Sales Outlook

Loop Capital downgraded Apple from “Buy” to “Hold,” citing a weaker iPhone shipment outlook. The firm believes Apple will not recover an estimated 13 million devices removed from its plans for the second half of 2026.

The firm also cut its Apple price target from $370 to $330. Loop Capital had previously assumed that memory and processor shortages had only delayed shipments that Apple could recover in 2027, but its latest supply-chain checks led it to abandon that view.

Updated shipment and pricing forecasts

Loop Capital now expects 79 million iPhone shipments in the December quarter, down from an earlier estimate of 85 million. It also lowered its projected average selling price from $1,239 to $1,123.

For 2027, the firm raised its shipment forecast to 260 million iPhones. However, lower average prices led it to cut its iPhone revenue estimate from $315 billion to $285 billion.

Loop Capital said rising memory costs could put additional pressure on Apple’s profits.

iPhone launch schedule is split

Apple’s staggered launch schedule makes its financial outlook harder to assess. The iPhone 18 Pro models arrived in September, the iPhone Duo is scheduled for October 23, and the standard iPhone 18, iPhone 18e and iPhone Air 2 are not expected until spring 2027.

Counterpoint Research attributed much of Apple’s third-quarter shipment decline to the absence of the standard model. Apple nevertheless reached a record 22% share of the global market in the third quarter, while worldwide smartphone shipments fell 20% year over year.