The article discusses a rare downgrade of Apple’s stock to a ‘Sell’ rating by Moffett Nathanson analyst Sterling Auty, citing concerns over the company’s ability to capitalize on artificial intelligence (AI) and potential iPhone sales declines. Auty believes Apple is lagging behind competitors like Google and Microsoft in AI capabilities, which could impact its ability to develop new products and services. Additionally, he expects iPhone sales to decline by 10% in 2024 due to a saturated smartphone market and longer replacement cycles. The downgrade reflects skepticism about Apple’s growth prospects and its ability to maintain its premium pricing strategy. Auty suggests that Apple may need to consider lower-priced products or bundle services to drive growth. The article highlights the challenges Apple faces in adapting to emerging technologies like AI and changing consumer behavior in the smartphone market.