JPMorgan warns: Apple may have problems in the future

While the restrictions imposed on Apple in China shook the giant, JPMorgan, one of the largest banks in the United States, warned investors.

According to JPMorgan, Apple shares are unlikely to outperform in the second half of the year.

The reason for this is that high valuations and rising risks in China cast a shadow over the long-awaited launch of the iPhone15 next week.

Banking analysts lowered their price target for the world’s largest company to $230 per share from $235 in a note published yesterday.

THE COMPETITION IS INCREASINGLY HIGHER

Experts said Apple’s restrictions on iPhone use in China, its biggest foreign market, came just as competition was heating up and Chinese competitors were launching new flagship phone models.

“The restrictions will make it difficult for Apple to continue gaining market share,” the note said.

JPMorgan recently said that Apple’s stock performance for the rest of the year depends on the launch of the iPhone 15 next week.

WHAT HAPPENED?

China has banned the use of Apple iPhone devices for commercial purposes in government institutions and has prohibited bringing these devices into offices. According to the news, in recent weeks senior managers imposed a ban on using these devices on employees of government agencies.

Additionally, Beijing plans to extend this restriction to state-owned companies and other government-controlled entities, said the sources, who asked not to be identified.

Following the news, Apple shares fell about 7 percent last week and the company’s total market value decreased by approximately $200 billion.