Wall Street keeps ratcheting down expectations for Apple Inc.
Jefferies analyst Brian Misek lowered his Apple price target to $420, from $500, amid continued supply-chain concerns and a potential delay in the next-generation iPhone.
Apple shares fell more than 1% on Tuesday, essentially erasing yesterday’s run-up that caught some traders by surprise.
In a research note, Misek said there’s a 25% chance the iPhone and iPad maker will fall short of its revenue forecast for the current quarter.
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“Our checks indicate Apple’s suppliers are having problems with the new casing colors leading to a push out from June to July-September after Apple hoped to pull forward the update,” Misek wrote to clients.
Misek warned late last year that Apple’s suppliers had received order cuts during the holiday season. On Tuesday, he cautioned sales could slow further following Samsung’s Galaxy S4 splashy launch this week.
He also estimated a low-cost iPhone could be priced somewhere between $350 to $450, higher than he had been anticipating.
Meanwhile, Misek predicts Apple had been eyeing an iTV-related launch later this year, but now 2014 appears to be a more likely launch for that product.
Apple shares have tumbled about 40% since peaking above $700 in September amid signs that the company is losing its competitive edge to the likes of Samsung Google Inc. Microsoft Corp. and maybe even Research In Motion Ltd. , among others. Concerns are also rising over an apparent lack of new game-changing products, which have previously driven Apple’s growth.
“Historically when handset makers fall out favor…they fall faster/further than expected,” Misek said.
Keep an eye on how the stock performs today. Traders had been picking up on recent�optimistic�trading patters over the last week.
Maybe the Intraday Movement in $AAPL has flipped, 4 of the last 6 days Open to Close is higher, reversing a HUGE trend
� KeeneOnTheMarket.com (@KeeneOnMarket) March 12, 2013
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