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 5:46:20 PM
The difference is that Android is so customizable that the experience across every phone is radically different. WP manages to have a high level of customizability but with the same core functionality. iOS is just bottom of the barrel at customization.
To say WP isn't very customizable would be ridiculously false, but I think we can agree that Android can go above and beyond. The real question is whether or not that is a good thing.
"This is about the Internet. Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
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
Man Who Shot Father for Texting During Movie Previews Was Also Texting
March 14, 2014, 2:25 PM
Sony's PS4 Outsells Microsoft's Xbox One for February
March 14, 2014, 12:36 PM
Skrillex Releases Free Album Inside App, But Crashes Torture Fans
March 13, 2014, 8:04 PM
Microsoft Waives Windows Phone OS Licensing Fees for Two Hardware Makers in India
March 13, 2014, 1:07 PM
Huawei Says Windows Phone is "Low Priority", Relegates It to Dual OS
March 13, 2014, 11:21 AM
$1,200 Nikon 1 V3 Mirrorless Camera Offers 120fps Slow Motion Capture
March 13, 2014, 9:04 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Tesla Motors Calls New Jersey Out on New Rule Against Its Direct Sales Model
March 11, 2014, 12:01 PM
NASA Considering SpaceX "Red Dragon" for Returning Mars Samples to Earth
March 10, 2014, 2:43 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information