The latest Apple stock downgrade centers around iPhone sales and the weakening consumer electronics market. Here's what investors need to know.

Here's why Apple is under pressure and if the sell-off in the growth stock is a buying opportunity. Apple stock has continued to run higher while its sales and earnings growth dramatically slowed, especially in the last two years.

Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, noting that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.

Apple faced two downgrades ahead of earnings, with analysts citing weak iPhone demand. China continues to be a headwind for sales.

Forecasts for weak iPhone sales and a weaker update of new artificial intelligence features prompted strategists led by Edison Lee to lower the rate to Underperform from Hold.

Jefferies has issued a stark warning for Apple investors, downgrading the stock to “underperform” from “hold” and lowering its price target to ₹200.75 from ₹211.84, as per a CNBC report. This new target implies a potential downside of 13% from Apple’s current market price.

Apple's growth is slowing due to market saturation and limited AI innovation. Learn why AAPL stock faces risks and has a Sell rating compared to Microsoft.