DA Davidson downgraded Apple (NASDAQ:AAPL) from Buy to Neutral while keeping a $250 price target, citing lackluster product innovation and muted near-term AI prospects.

The analysts said they had initially expected Apple to play a larger role in artificial intelligence and to drive a major upgrade cycle. However, recent announcements failed to deliver compelling updates, with the iPhone 16, iPhone 17, and iPhone Air leaving questions about consumer demand.

While the Vision Pro headset had generated excitement at launch, DA Davidson described it as a niche device. A foldable iPhone expected next year might not be enough to trigger a broad upgrade cycle, the firm said. Until Apple can meaningfully innovate its core lineup or launch a new product category, the analysts expect growth to remain constrained.