Wednesday November 14, 2018

Apple Stock Downgraded Following iPhone Sales Predictions

CNBC reports that a Guggenheim Partners analyst predicted a 5% decline in 2019 iPhone sales, and naturally, other analysts have cut down price targets in response. The word of financial analysts tends to form a kind of self-fulfilling prophecy, and sure enough, Apple's stock price seems to be steadily dropping today. The price is down from $216 on October 26, the day Apple released new iPhones, to about $187 at the time of this post. Apple recently stopped breaking out unit sales, presumably to make their sales numbers look better, but that doesn't appear to be appeasing investors today.

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"We are concerned that end demand for new iPhone models is deteriorating," Goldman said in the note. "We note this could easily right itself given the bulk of demand comes in late December but we feel more prudent sell through forecasts are warranted due to the timing and magnitude of this warning.Apple began the month by reporting iPhone shipments that missed Wall Street expectations for the quarter.