Apple: Citi says June demand pull-in leads to more uncertainties in H2

Published 11/07/2025, 13:44
© Reuters

Investing.com -- Apple’s stronger-than-expected June-quarter iPhone sales may have come at a cost to the second half of the year, according to a note from Citi analysts.

“While we acknowledge upside from the pulled forward demand in the Jun-Q driven by tariffs pause and aggressive promotions in China, we remain cautious on the full year iPhone demand given AI delay and pending Section 232 decisions,” Citi said, in a note Friday. 

The firm adjusted its June-quarter iPhone unit forecast to 45 million, up 2 million from prior estimates, while cutting its September-quarter forecast by the same amount to 50 million.

Citi maintained its full-year iPhone shipment forecasts at 226 million units for 2025 and 234 million units for 2026, representing year-over-year growth of -0.5% and +3.1%, respectively.

In China, Apple (NASDAQ:AAPL) saw “stabilizing” sales thanks to aggressive June 18 promotions and “milder channel inventory digestion compared with Android,” Citi noted. 

The firm cited Counterpoint data showing that Apple’s smartphone sell-through rose 8% year-over-year in the second quarter.

On the Services side, Sensor Tower data showed App Store revenue growing at a 12% pace in the June quarter. 

Citi still expects LDD growth, despite Apple not providing specific guidance. It also sees no clear sign yet of EU revenue being impacted by recent Digital Markets Act (DMA) changes.

Regarding AI, Citi said Apple “appears to be more willing to engage with external LLM providers,” but added that the company is not abandoning its own models. 

“Investors would turn more positive if Apple could acquire or invest a meaningful stake in an established AI provider,” analysts wrote.

 

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