In a notable shift in investment patterns, Indian traders have significantly increased their interest in Apple Inc. following the launch of the latest iPhone model and recent FDA clearance for a hypertension detection feature on Apple Watch. This surge in interest has led to a marked increase in trading volumes for Apple stock on local online trading platforms.

Surge in Trading Activity

The enthusiasm for Apple shares among Indian investors is evident in the numbers:

• Trading volumes for Apple stock increased by 20-30% compared to the previous month's average.
• IND Money reported a 30% jump in trading volumes post-launch, with 70% of orders being buy orders.
• Vested Finance noted that trading activity nearly quadrupled compared to the week prior to the launch.
• Buy orders outpaced sell orders by more than two to one on the Vested Finance platform.

This trend aligns with historical data, which shows that trading volumes typically surge by 200-500% during iPhone launch weeks over the past five years.

Market Response and Analyst Caution

Despite the increased trading interest from Indian investors, Apple's stock performance has been mixed:

• Shares fell 3.20% the day after the new iPhone launch.
• In the run-up to the event, the stock declined by 5.40%.

Some analysts remain cautious about Apple's long-term prospects, citing concerns over reduced innovation and an increased focus on share buybacks.

Indian Investors' Access to Foreign Stocks

Indian investors can access foreign stocks, including Apple, through two primary methods:

1. International mutual fund schemes
2. Direct investing via online platforms using the Liberalised Remittance Scheme (LRS)

The LRS allows Indian residents to transfer up to $250,000 abroad per financial year for various purposes, including investment in foreign stocks.

Apple Watch Hypertension Detection Feature

Adding to the investor interest, Apple has received FDA clearance for its hypertension detection system on the Apple Watch. Key points include:

• The feature is set to launch next week across 150 countries, including the US, Hong Kong, and European Union.
• It uses the watch's optical heart sensor to analyze blood vessel responses to heartbeats over 30 days.
• The system will notify users of potential chronic hypertension signs.
• Available on Apple Watch Series 9, Series 10, Series 11, Ultra 2, and Ultra 3 models.
• Developed using machine learning and training data from studies involving over 100,000 participants.

This launch comes amid increased competition from tech companies like Garmin, Samsung Electronics, and Oura Health in the health tracking space. Hypertension affects approximately 1.3 billion adults worldwide and is a primary risk factor for stroke, heart attack, and kidney disease.

Conclusion

The surge in Apple share purchases by Indian investors following the new iPhone launch and the announcement of the hypertension detection feature demonstrates the growing interest in international equities among Indian traders. While this increased activity is noteworthy, it's important for investors to consider both the enthusiasm surrounding product launches and the broader market sentiment when making investment decisions. The addition of health-focused features like hypertension detection may further influence investor interest in Apple's ecosystem and long-term growth potential.

Apple Inc., the tech giant known for its innovative products, is facing a challenging period as analyst sentiment reaches its lowest point in nearly five years. The company received two significant downgrades on Thursday, causing its analyst recommendation consensus to drop to 3.9 out of 5, a level not seen since early 2020.

Declining Buy Recommendations

The recent downgrades have led to a notable shift in analyst recommendations for Apple stock. Currently, only 55% of analysts recommend buying Apple shares, a figure that pales in comparison to other tech megacaps. For context, companies like Nvidia, Microsoft, and Amazon boast buy ratios exceeding 90%, highlighting the growing concerns surrounding Apple's near-term prospects.

Recent Downgrades

D.A. Davidson's Downgrade

D.A. Davidson, a prominent financial services firm, downgraded Apple's stock from 'buy' to 'neutral'. Analyst Gil Luria cited disappointment with recent product announcements, including the introduction of a thinner iPhone. More importantly, Luria expressed concerns about Apple's positioning in the rapidly evolving artificial intelligence (AI) landscape.

"Apple's role in the AI ecosystem and potential upgrade cycle are unlikely to materialize near-term," Luria stated, suggesting that the company may be lagging behind its competitors in leveraging AI technology.

Phillip Securities' Cautious Outlook

Adding to the bearish sentiment, Phillip Securities also downgraded Apple's stock from 'neutral' to 'reduce'. This decision came in the wake of Apple's impressive 30% rally from its April lows, indicating that the firm believes the stock may be overvalued at current levels.

Analyst Helena Wang from Phillip Securities pointed to a cautious outlook, citing a "lack of significant AI innovation and persistent weakness in products and China market" as key factors influencing their decision.

Market Performance

Despite the downgrades, Apple's stock showed resilience on Thursday, rising 0.60%. However, this minor gain does little to offset the company's underperformance, with shares down 9.00% year-to-date. This decline is particularly notable when compared to the Nasdaq 100 index, which has posted a robust 14.00% gain over the same period.

The contrasting performance between Apple and the broader tech market underscores the challenges the company faces. As competitors make strides in AI and other emerging technologies, investors and analysts alike are closely watching Apple's next moves to maintain its competitive edge and reignite growth.

As Apple navigates these headwinds, the company's ability to innovate, particularly in the AI space, and address concerns about product cycles and market performance will be crucial in regaining analyst confidence and maintaining its position as a leading tech stock.