Wall Street analysts downgraded Apple stock (AAPL) on Monday amid signs that the demand for iPhones is slowing, which could threaten Apple's performance in its June quarter. AAPL's stock dropped on the news.
Ananda Baruah, Loop Capital analyst, lowered the rating of Apple's stock from Buy to Hold but maintained his price target.
Apple shares fell 0.7% in morning trading on the stock exchange today to 174.03.
Baruah wrote in a client note that Apple had reduced its build (and, we believe, shipment forecasts), for the second time within the past four weeks. He added that the news could have a negative impact on Apple's guidance for the June quarter and Wall Street expectations.
Baruah downgraded Apple's chip supplier Cirrus Logic to Hold from Buy. He also lowered his price target for CRUS from 92 to 80. In Monday morning trading, CRUS fell 2.5% to 76.15.
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John Donovan, supply chain analyst at Loop Capital, believes Apple has reduced iPhone production and shipments in the June quarter by 10% over the last six-week period to 34.2 millions units.
Donovan wrote in a client note that Apple appeared to have increased its iPhone production during the third quarter of September ahead of the iPhone 15's launch. He estimates Apple will build 55,000,000 iPhones in the next quarter.
Donovan stated that Apple's iPhone 15 plans call for only 87 million units by 2023. This is down from the initial 98 million, he said.
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