Apple's stock price drops significantly, assessed to be marginalized by the Ai i

[Apple's stock price drops significantly, assessed to be marginalized by the Ai industry] Apple's stock price fell too much (-3.6%) [Samsung Securities IT/Lee Jongwook]

Shares fell 3.6% and led the Nasdaq IT sector's decline after a brokerage offered an underweight opinion.
The background is the slowing demand for Apple devices - the reverse growth of iPhone + MacBook. The trend of tightening anti-trust regulations is also a risk factor for Apple.

Rather, we think it's time to think about when to change the perspective of Apple's stock, which has been giving negative opinions.

1. Basically, it's negative for Apple's stock price. iPhone shipments are at their peak, and I think 24-year shipments will be only at the previous year's level. Competition in China is increasing, and demand for expensive products is slowing down.

2. However, there is no reason for Apple's sluggish demand to investors at a time when MacBook shipments have already grown for 23 years, iPhone 15's results are sluggish, and Huawei has released 5G phones.

3. It's a bottom-point search period. Apple's stock price has risen in the last two months in time for a sector rebound since the iPhone 15 slump was reflected, but the rise during this period has been rather unprovoked. When will the bottom-point of the stock price be? The search period is likely to last for a while. I think an adjustment like yesterday is a healthy adjustment for a strong rebound.

4. You don't have to be impatient during the bottom search. It's not going to be profitable for the device makers this year anyway. And once stocks like Apple start going up, they don't end in the short run. This IT cycle is in the order of software - parts - sets, and all you have to do is observe whether or not Apple joins in the final cycle.

5. What's important to bottom out isn't the rebound in iPhone and MacBook shipments that are already out of cycle. We believe AI in Apple is an important keyword. You can gauge Apple's AI plans in Vision Pro, at developer conferences, and on iPhone 16.

6. Apple is definitely behind in AI. But the main game hasn't started yet. Apple has the data and device-service integration capabilities left behind by its loyal customers. How much AI you can melt on your devices is a key point in the stock price.

Thank you.

(2024/1/3 Publication Materials)