Apple iPhone sales make this brokerage go for a big announcement
After reaching stellar heights that surprised many experts even, Apple Inc shares are on their way down as brokerages move to take into account the latest sales figures of this iconic company's products, including the iPhone in its many avatars.
After reaching stellar heights that surprised many experts even, Apple Inc shares are on their way down as brokerages move to take into account the latest sales figures of this iconic company's products, including the iPhone in its many avatars. There is a slowdown and it has hit especially the iPhone, once the most sought-after smartphone in the world and this has prompted raters to fo the unthinkable - downgrade the stock. Apple iPhone sales slowed down in June and what is more, a production cuts is expected for the the iPhone XR variant.
One of the first to move in this direction is Rosenblatt Securities, research and investment banking brokerage firm, which downgraded the iPhone maker to "sell" from "neutral". The initial reaction by Apple shares was to fall by nearly 1.5 per cent on Monday after the downgrade. Apple share price was down to $200.90 in early market trade.
Apple received a downgrade from Rosenblatt Securities owing to slow iPhone sales in June and expected production cuts for the XR model. In a note to clients, according to Business Insider, Jun Zhang analyst at CNBC, said that "We believe Apple will face fundamental deterioration over the next 6 to 12 months".
Zhang added, "Adding to our 'sell' thesis, we believe new iPhone sales will be disappointing". Zhang said that iPhone XS may have been "one of the worst selling iPhone models in the history of Apple".
Nevertheless, the analyst said that Cupertino-based Apple inc would, maintain its $150 price target. Apple Inc will be looking to stem the rot with the launch of a new iPhone. This is likely to happen in September and, looking to stay in tune with the trend in the smartphone market, it is likely to pack a triple-camera system. A new chipset too may be in the offing.
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