By Emily Dattilo
Apple stock bounced back Friday as Wall Street shifted its focus to the iPhone maker's coming earnings report.
Apple's December quarter results will offer the company a chance to appease both investors and analysts who have grown concerned about slower iPhone sales growth and shrinking market share in China.
Apple lost its crown as the top smartphone seller in China in 2024, according to data released Thursday by research firm Canalys. The company now ranks third in terms of smartphone market share in the world's second-largest economy -- partly because iPhones purchased in China don't have artificial-intelligence features available.
That news sent Apple stock for a 4% tumble on Thursday, marking its largest daily percentage decrease in more than five months.
But the shares recovered some of those losses in morning trading Friday, rising 1.3% to $231.25. While that still leaves Apple stock down 9.5% over the past three weeks, the market is starting to look ahead to the company's December quarter earnings report on Jan. 30.
On Friday, Evercore ISI analysts led by Amit Daryanani shared some reasons for optimism ahead of the report, particularly regarding iPhone sales.
"We are positive on Apple heading into the print as services should remain strong and we think iPhone sales will continue to improve as we move through the fiscal year," analysts wrote. "Shifting of investor focus to the iPhone 17 and SE plus another better-than-feared China quarter should also add some incremental positivity to the narrative around iPhone."
They rate Apple at Outperform with a price target of $250 and added the stock to their Tactical Outperform list.
Raymond James analysts Srini Pajjuri and Grant Li, however, have a more cautious take. They wrote in a Thursday note that the results will likely arrive in line with estimates, but warned that foreign exchange headwinds could weigh on its guidance for the current March quarter.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
January 17, 2025 11:23 ET (16:23 GMT)
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