Investing.com -- Citi analysts maintained their Buy rating on Apple (NASDAQ:AAPL) in a note Tuesday, arguing the stock is "set up well" for 2026, primarily due to "a major revamp of its software designs across Apple platforms, new operating systems, and Apple Intelligence updates" showcased at the recent 2025 WWDC.
Citi said it liked the new and "more unified ’Liquid Glass’ design across all platforms," along with "continued improvement on Vision Pro, the more Mac-like iPadOS and more iPhone apps on MacOS for continuity."
They particularly like "how Apple Intelligence is deeply integrated in apps across Apple devices," even acknowledging that investor focus remains on the "previously delayed personalized Siri update to 2026."
Despite these software advancements, Citi kept its iPhone unit forecasts at "226/234M in 2025/26, or –0.6%/3.2% Y/Y growth."
They anticipate "some pull-in in the Jun-Q given temporary pause on reciprocal tariffs in China and other countries, and pending Section 232 decisions, with more uncertainties in the 2H."
Regarding iPhone demand in China, Citi notes that, according to CAICT, China’s April total smartphone shipment was down 1.6% year-over-year.
However, "foreign mobile phone (mostly iPhone) outperformed by growing 1% y/y."
Citi believes that combining this with "aggressive promotions during 618 shopping festival and likely tariffs related pull-in," China iPhone sales "could stabilize in the Jun-Q."
They also highlight that the past March quarter was the first time Apple saw "flattish China sales in constant currency basis."