Categories LATEST, Markets, Technology

Apple’s stock drops on analyst downgrade and bleak iPhone outlook

Apple Inc.’s (NYSE: AAPL) shares were down by 2.1% in midday trade on Monday after Rosenblatt Securities downgraded the stock from Neutral to Sell on grounds that there was less reward in owning the stock. The firm maintained its price target of $150 per share.

Analyst Jun Zhang said in a note to clients that although the firm didn’t consider Apple’s stock as a short, it believes the company will face fundamental deterioration over the next 6-12 months. The firm believes new iPhone sales will be disappointing and that iPad sales growth will slow in the second half of 2019 while other product sales growth may not be meaningful to support total revenue growth.

Apple has been facing concerns over the lack of innovation in its iPhones and the company recently saw the departure of its chief design officer Sir Jony Ive. Apple has been losing revenue to Samsung and other players due to its failure in updating its flagship product. The company is also facing tough competition from Chinese companies like Huawei and Xiaomi, who constantly update their products with the latest technologies.  

Last month, a report revealed that Huawei and Xiaomi were performing better than Apple and Samsung in the European market and appear to be slowing snatching market share away from the iPhone-maker and the Korean smartphone giant.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top