Barclays lowers AAPL target to $115 on overall problems in smartphone demand

Posted:
in AAPL Investors
While maintaining an "overweight" rating, a Barclays analyst reduced the firm's price target for Apple stock from $121 to $115 on Friday, citing soft demand for smartphones along with expectations that Apple won't rise above the fray.




iPhone shipping estimates have been reduced from 40.9 million to 39.9 million for the June quarter, and from 46.6 million to 43.9 million for the September quarter, Mark Moskowitz wrote in an investor memo seen by AppleInsider. The analyst lowered his overall 2016 iPhone numbers from 212.1 million to 203.7 million, and is now forecasting 224.4 million iPhones for 2017 instead of 233.8 million.

The annual unit numbers would imply a 12 percent decline for 2016, but a 10 percent rebound next year.

Apple's stock could rise following an "iPhone 7" launch this September, Moskowitz suggested, but the next "mega cycle" isn't predicted until next year, when an iPhone with "major form factor changes" is expected. That model is rumored to include an edge-to-edge OLED or AMOLED display, possibly integrating camera and Touch ID components.

Apple is due to reveal results for the June quarter on July 26. The company's guidance has been bleak, calling for billions less in revenue year-over-year.

Comments

  • Reply 1 of 9
    Usually these price targets are mentioned when they want to initiate a move in the stock for their firm to make a quick profit. I would do better guessing that Barclay's would be the next Bear Sterns a year from now than guessing that Apple will have any problems selling phones a year from now.
    badmonkyojimbo007netmage
  • Reply 2 of 9
    jmey267jmey267 Posts: 53member
    Funny about all the downgrades for Apple, the usual slowing phone sales nonsense but boy if you make components for one of their devices your stock price goes up. just look at Intel now because they may make a chip for the new iPhone it is a new must own stock, oh please.
  • Reply 3 of 9
    g-newsg-news Posts: 1,107member
    I've been waiting for my iPhone SE, space gray, 64GB, to ship for two months now (as of next Wednesday). I have no idea what's going on. Either Apple is selling billions of them, or they've simply stopped manufacturing them in the first place. As a stock holder and as a customer, this is a very uncomfortable situation.
    fastasleep
  • Reply 4 of 9
    Wall Street in and of itself is a joke. The market is completely overbought at these ludicrous levels. Analysts have no idea what they are talking about by and large. The challenge Apple has is that they don't have an overly exciting narrative, thus the stock is seen as "boring". Google has a narrative of moon-shot projects that may or may never make a dime. Facebook has a narrative of some gee-whiz platform that is really just an ad peddler. Apple's narrative is of "only" making more money than any other company in history. But where will future growth come from? You are not slurping user data for ads?! Total farce.
  • Reply 5 of 9
    bluefire1bluefire1 Posts: 890member
    I'll be repurchasing Apple stock early in 2017 when the fallout from reduced sales of the iPhone 7 levels off. The 2017 model will propel the stock back to where it belongs.
  • Reply 6 of 9
    fastasleepfastasleep Posts: 2,838member
    g-news said:
    I've been waiting for my iPhone SE, space gray, 64GB, to ship for two months now (as of next Wednesday). I have no idea what's going on. Either Apple is selling billions of them, or they've simply stopped manufacturing them in the first place. As a stock holder and as a customer, this is a very uncomfortable situation.
    Wow! 2 months? Purchased through Apple? My guess is demand is through the roof — obviously they already had the production lines for the 5 form factor running at full speed. 
  • Reply 7 of 9
    linkmanlinkman Posts: 907member
    g-news said:
    I've been waiting for my iPhone SE, space gray, 64GB, to ship for two months now (as of next Wednesday). I have no idea what's going on. Either Apple is selling billions of them, or they've simply stopped manufacturing them in the first place. As a stock holder and as a customer, this is a very uncomfortable situation.
    Wow! 2 months? Purchased through Apple? My guess is demand is through the roof — obviously they already had the production lines for the 5 form factor running at full speed. 
    Ordering that phone (I specified AT&T and pay in full up front) through Apple's web site on 7/16/2016 indicates a delivery date in the US of 7/19/2016 with no added shipping charges.
  • Reply 8 of 9
    plovellplovell Posts: 800member
    g-news said:
    I've been waiting for my iPhone SE, space gray, 64GB, to ship for two months now (as of next Wednesday). I have no idea what's going on. Either Apple is selling billions of them, or they've simply stopped manufacturing them in the first place. As a stock holder and as a customer, this is a very uncomfortable situation.
    These are available for pickup TODAY at four local Apple stores (Washington DC area). Something is borked with your order. Are you SURE you actually placed it?
  • Reply 9 of 9
    entropysentropys Posts: 1,698member
    Wall Street in and of itself is a joke. The market is completely overbought at these ludicrous levels. Analysts have no idea what they are talking about by and large. The challenge Apple has is that they don't have an overly exciting narrative, thus the stock is seen as "boring". Google has a narrative of moon-shot projects that may or may never make a dime. Facebook has a narrative of some gee-whiz platform that is really just an ad peddler. Apple's narrative is of "only" making more money than any other company in history. But where will future growth come from? You are not slurping user data for ads?! Total farce.
    Quite so.  Iterative progression of iPhones, delay, decay and outright neglect of macs, a CEO grandstanding about with the political class, diversion of attention to products way outside of its expertise, a new Versailles being built in Cupertino. It all leads Wall Street to believe Apple is in the late mature phase of its business cycle and is just operating to milk its customers as long as it can before being sold to some corporate raider to be broken up for massive incentive fees to the Board and execs.
    edited July 2016 tallest skil
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