Categories LATEST, Technology, U.S. Markets News

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

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Tags

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