Having broken below its 200-day moving-average and suffering from the herd-like shift in trend of analyst downgrades, the ‘no-brainer’ stock of all ‘no-brainer’ stocks has plunged over 20% from its record highs and officially entered a bear market…
In November, Apple reported underwhelming iPhone sales, forecast that its holiday quarter will be on the low end of expectations., and also said that it would stop reporting unit sales for iPhones, iPads, and Macs.
Earlier this week, a handful of Apple suppliers cut their outlooks, suggesting weaker smartphone demand ahead; and that was followed by analyst downgrades.
Then, earlier today, hot on the heels of a downgrade by Goldman, Guggenheim analyst Mark Cihra said that Apple’s waning iPhone demand mean the big jump in ASPs won’t be enough, adding that iPhone supplier guidance cuts suggest a 5% drop in 2019 iPhone unit sales, which is greater than the price increase, resulting in a revenue decline, something Goldman also concluded yesterday.
“We see growing risk of even softer iPhone unit demand, with downside in China, India and other emerging markets, where Apple may need to start considering lower price points,” Guggenheim analyst Mark Cihra said in a note sent out to clients on Wednesday. He downgraded Apple to “neutral” and removed his prior $245 price target.
As reported on Tuesday, Goldman Sachs said largely the same, concluding that “end demand for new iPhone models is deteriorating”, especially out of China, which prompted Goldman to cut its AAPL price target from $222 to $209, as a result of the recent LITE announcement, which according to Goldman will result in 6% fewer (or 15 million units) iPhone units and a 3% drop in revenue.
So is it any wonder this ‘tech’ darling is being dumped?
A $200 billion market cap loss.