Citi Backs Apple as Siri Delays Hit Shares, AI Features Go Global

Ladies and gentlemen, buckle up! We're diving headfirst into the whirlwind of Apple's latest drama. The tech giant is facing a storm of delays with its Siri AI upgrade, and the market is feeling the heat. But don't panic just yet—Citi is still backing Apple, and there's more to this story than meets the eye.



First things first: Apple's stock took a nosedive on Wednesday, extending its losing streak to three days straight. The culprit? The delay in Siri's AI upgrade, which was supposed to be the next big thing in voice assistants. Morgan Stanley analysts are already warning that this delay could leave customers with fewer reasons to upgrade their iPhones, potentially flattening iPhone sales in 2025 and slowing growth in 2026. Citi, on the other hand, has cut its iPhone sales estimates for 2025, projecting a mere 2% growth to 232 million units, down from the earlier 5% growth estimate.

But here's the kicker: Citi is still maintaining a "buy" rating on Apple stock with a price target of $275. That's a 20% increase from the current share price, folks! So, what gives? Why is Citi so bullish on Apple despite the Siri delay?

The answer lies in Apple's broader AI strategy and its global ambitions. Apple is not just sitting on its hands waiting for Siri to catch up. The company is aggressively pushing its Apple Intelligence initiative, forging partnerships with tech giants like Alibaba and Baidu in China. By enhancing support for Simplified Chinese by April, Apple is positioning itself to dominate the AI landscape in one of the world's largest markets.



Now, let's talk about the elephant in the room: tariffs. Apple's exposure to tariffs on goods from China could shave off 1.7 percentage points from its gross margin, according to Citi analyst Atif Malik. But Apple is not one to be caught off guard. The company is actively seeking tariff exemptions and exploring ways to diversify its manufacturing base. By shifting some production to countries like India, Vietnam, or Mexico, Apple can mitigate the impact of tariffs and maintain its profitability.

So, what's the bottom line? The Siri delay is a speed bump, not a roadblock. Apple's stock may be taking a hit in the short term, but the company's long-term prospects remain strong. With a robust AI strategy, global partnerships, and a relentless focus on innovation, Apple is poised to weather this storm and emerge stronger than ever.

Do this: Stay invested in Apple. The Siri delay is a temporary setback, and the company's AI initiatives will pay off in the long run. Don't miss out on this opportunity to own a piece of the future!

Boo-yah! Apple is still the king of tech, and this is just another chapter in its epic story. Stay tuned for more updates, and remember: the market may be volatile, but Apple's fundamentals are rock solid.