MW Apple's stock may see its worst day since since 2022. Here are 2 major worries.

By Therese Poletti

Investors are concerned about delayed AI features and the looming threat of tariffs

Shares of Apple Inc. are on pace for their biggest daily drop in two-and-a-half years, as technology stocks broadly sell off and as Apple investors worry about several factors specific to the company.

The stock $(AAPL)$ was down 5.8% in Monday afternoon trading, outpacing declines for the Nasdaq Composite index COMP. Apple was also the second-weakest performer among the "Magnificent Seven" grouping of large technology stocks, and its declines were shaving 85 points off the Dow Jones Industrial Average DJIA.

According to Dow Jones Market Data, Apple shares are on pace for their biggest one-day percentage drop since Sept. 13, 2022, when they fell 5.9%.

That comes after Citi analyst Atif Malik lowered his calendar-year 2025 estimates for Apple's iPhone business, citing a delay in the launch of an anticipated Siri upgrade that would have added more Apple Intelligence artificial-intelligence features to the voice assistant. Citi is now expecting iPhone sales for calendar 2025 to be up 2% to 232 million units, whereas it was previously expecting 5% growth.

See also: Apple hopes adding this feature to its lower-priced iPhone will make it more enticing

"While Apple Intelligence utility is different for different people, an upgraded Siri would have driven a higher iPhone refresh this year, in our view," Malik said in a note to clients, while reiterating a buy rating on Apple's stock and keeping a price target of $275. "The expectation had been that the big upgrade of Siri with on-screen awareness, personal context, and deep app integration will be released sometime this April/May."

But on Friday, Bloomberg reported that Apple confirmed it was delaying promised updates with AI features to Siri until sometime "in the coming year." They had originally been planned as part of its next upgrade to its iOS software this April.

Citi also noted that Apple so far has yet to get any exemptions on tariffs. Assuming it does not get any exemptions this time around, Malik estimates that tariffs could be a 1.7-point drag on the company's gross margins, assuming 90% of manufacturing in China for total Apple products and that 40% of sales come from the U.S.

Malik also cut fiscal 2025, 2026 and 2027 earnings estimates by about 1%.

Read: Apple may have to raise prices of the iPhone to offset tariffs, says BofA

-Therese Poletti

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March 10, 2025 14:02 ET (18:02 GMT)

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