Apple Inc. faced a challenging start to the year as its stock experienced significant downgrades from analysts due to concerns over weak iPhone sales and the impact of its Apple Intelligence AI rollout. Shares of Apple fell 3.2% on Tuesday, marking the stock's lowest close since November and contributing to a monthly decline of 11%. The downgrades came from Loop Capital, which moved its rating to hold, and Jefferies, which issued a rare underperform rating. Analyst Edison Lee from Jefferies highlighted a sharp decline in iPhone sales in China, dropping 18.2% in the December quarter, and a global sales decrease of about 5% in the final quarter of the previous year. Additionally, Goldman Sachs analyst Michael Ng slightly lowered his price target on Apple stock to $280 from $286 but maintained a buy rating, citing expectations of a 1% increase in iPhone sales for the fiscal first quarter. Despite the downgrades, Wedbush analyst Dan Ives suggested that the market's reaction might be overdone, pointing to the potential for Apple Intelligence to drive future growth.