“Another day, and more earnings estimate cuts for Apple,” Chris Ciaccia reports for TheStreet. “This time Barclays Capital and Citi cut their estimates, but for different reasons.”
“Citi is worried about both the iPhone and the iPad, reducing estimates for Apple’s two major product lines and saying that end demand is softening. ‘Indications of reduced demand to Apple’s suppliers contribute to our existing concerns that end demand for 10″ iPad and iPhone 5 in particular is softening, reflecting share loss by Apple in both the tablet market and the smartphone market,’ wrote analyst Glen Yeung, in the report. He cut his price target to $480 from $500, but kept his ‘neutral’ rating,” Ciaccia reports. “End demand for the larger iPad also concerns Yeung, as the iPad mini cannibalizes the larger version and the tablet market becomes more mature.”
Ciaccia reports, “Barclays Capital analyst Ben Reitzes cut his estimates, noting that he believes the second half of 2013 will see new products and potential carrier additions, such as China Mobile and NTT DoCoMo… He cut iPhone estimates for the March quarter to 35 million, down from 36 million, with the full year at 150.8 million units. iPad estimates were cut for the March quarter, “to account for weakness in larger iPads and seasonality.” Reitzes now expects 18 million units will be sold, down from 19 million. He expects demand will pick up in the third quarter, with 19 million units sold and 84.9 million units being sold for fiscal 2013… For fiscal 2013, Reitzes now expects earnings of $43.75 a share on $181.49 billion in sales, down from $44.56 a share and $184.66 billion, respectively.”
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