Apple stock plunges 4%, delayed foldable iPhone and slowing App Store growth drag down AAPL

LootboxPhobia · 2026-04-07T14:55:39+00:00

Apple's stock plummeted 4% on Tuesday, making it the biggest contributor to the Dow's decline. The reasons include setbacks in foldable-screen iPhone development and slowing growth in the App Store. Analysts pointed out that poor performance in the U.S. market and weak gaming business have added to the downward pressure on the stock.

LootboxPhobia

2026-04-07 14:55:39

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Investing.com - Apple (NASDAQ:AAPL) plunged 4% on Tuesday, becoming the biggest decliner in the Dow, as multiple negative reports put pressure on the stock price. Subscribe to InvestingPro to get premium insights into the commodities markets

The stock’s drop was driven by a report in Nikkei Asia on Monday, which said the company’s first foldable-screen iPhone encountered setbacks during engineering testing, potentially delaying its production and shipment timeline. According to people familiar with the matter, engineering development issues could, in the worst case, push back the first shipment of the foldable iPhone by several months. Nikkei previously reported in January that Apple would focus on launching its first foldable-screen iPhone in the second half of 2026, along with two non-foldable models with upgraded cameras and larger displays, as its flagship products.

App Store data also weighed on the stock price. UBS analyst David Vogt said that according to App Store data from Sensor Tower, growth in the March quarter was about 7%, dragged down by zero growth in the U.S. market. On an FX-neutral basis, App Store growth in the March quarter was about 5%, unchanged from the December quarter.

Evercore ISI analyst Amit Daryanani also noted that App Store growth slowed in March, as the gaming business weakened again and weighed on the overall momentum. Gaming revenue fell 1% year over year. The U.S. market was down 2% year over year, Japan down 3%, with both turning negative, while the China market grew 7%.

Before Tuesday’s decline, Apple’s stock price had risen 5% over the previous four trading days. The 4% drop exceeded the decline in the Nasdaq 100 index.

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