Apple Gets Four Major Stock Downgrades After iPhone Event
September 11, 2013 12:39 PM
comment(s) - last by
Analysts worry that the price of the iPhone 5C is too high for emerging markets like China
Apple's big iPhone event Tuesday
failed to impress
analysts, and they made that point clear with four major downgrades.
JPMorgan Chase & Co., Bank of America Corp., UBS AG, and Credit Suisse Group AG all downgraded Apple after the reveal of its
iPhone 5C and 5S
on Tuesday. This sent Apple's shares down as much as 5 percent in premarket trading Wednesday morning.
A few specifics are Credit Suisse Group AG's downgrade from "Outperform" to "Neutral"
Bank of America's downgrade to "Neutral" from "Buy."
According to the four major financial firms, the 5C wasn't priced low enough to grab its intended audience (which would be emerging markets). For instance, in China (which is one of the targeted markets), the 5C will sell for $730 because the country doesn't have subsidized phones.
One good note on the China front, though, is that Chinese regulators gave the final required license for the iPhone to work on China Mobile Ltd's mobile network. This is a great new opportunity for Apple to expand its number of users, but the question still remains: will Chinese users want to pay that much for the iPhone?
In addition to 5C worries, analysts believe the 5S' specs don't seem to match those of competitors like Samsung in the high-end market.
Analyst Kulbinder Garcha, who has a price target of $525 a share for Apple, predicts that Apple’s smartphone market share will drop to 15.5 percent this year and 13.1 percent next year. This is a far fall from 2012's 18.1 percent market share.
Despite this hard hit from four major financial companies, Apple did at least see a few increases in price targets after the 5C/5S announcements. For instance, Nomura analyst Stuart Jeffrey increased his price target for the stock from $420 a share to $480, and Canaccord Genuity analysts increased their price target from $530 to $550 a share.
Apple's stock has taken a beating over the last year since it's high of $705 in September 2012. It fell
as low as $398.05 a share
back in June of this year due to concerns regarding whether Apple still had the ability to innovate like it did in the days of the 2007 iPhone release and the 2010 iPad release. Since the death of former Apple CEO Steve Jobs, Apple has only released new versions of the iPhone and iPad, and hasn't created any new, revolutionary products.
Apple's stock is sitting around $467 as of noon today.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
RE: What did they expect?
9/11/2013 2:57:09 PM
What world do you live in that Windows can't be customized?
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Apple Announces $99 iPhone 5C, iPhone 5S with 64-bit A7 Processor and "Touch ID"
September 10, 2013, 1:15 PM
Apple Stock Dips to $400 as iPhone Inventory Climbs
June 25, 2013, 9:00 AM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
Microsoft to Close Nokia Store, May Lose Over a Hundred Thousand Apps
January 26, 2015, 11:15 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information