Please try another search
© Reuters.
Investing.com – Apple (NASDAQ:AAPL) fell on Thursday after one Wall Street analyst suggested the stock may be running too hot, slapping a sell rating on the tech giant on expectations that sales of its latest slate of iPhones will come up short.
Maxim Group downgraded its rating on Apple to sell from hold, with a price target of $190. Apple (NASDAQ:AAPL) fell about 0.5% to around $263.
Citing analysis of a propriety survey, Maxim said it expects iPhone revenue to come in 14% below consensus in fiscal second quarter of 2020 and 6% below for the full year, with overall iPhone revenue down 5% for the year.
Against the backdrop of falling iPhone sales, some have suggested that the company's higher-margin services business would plug the gap.
But Maxim disagrees, forecasting that Apple’s operating profits will fall 2% year over year as ongoing growth in services and wearables will only partially offset iPhone declines.
In its most recent quarter, however, Apple (NASDAQ:AAPL) has shown there is life beyond the iPhone.
Wearables and services helped drive revenue up 1.8% in the September quarter, offsetting a 9.2% decline in iPhone sales.
Still, many on Wall Street are betting the tech giant will revive iPhone sales with the launch of a 5G-enabled smartphone touted for late next year.
Bloomberg reported recently that Apple (NASDAQ:AAPL) expects iPhone sales to return to growth next year after the launch of 5G-enabled phones. The iPhone maker plans to ship 200 million phones in 2020, the report said.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.