Analyst: Apple could fall 20% as iPhone sales slow and Apple Watch disappoints

“Apple shares could fall 20 percent as iPhone sales slow in the second half of this year and sales of the company’s new Apple Watch fail to offset that decline, an analyst said in a note Thursday,” John Melloy reports for CNBC.

“Abhey Lamba of Mizuho Securities downgraded the world’s biggest company, whose shares rose almost 40 percent in 2014 to a record high, to ‘neutral’ from ‘buy,'” Melloy reports. “The analyst’s 12-month price target remains unchanged at $115, about $5 above Wednesday’s closing price, but Lamba said ‘downside’ for the stock could be in the mid-$80s.”

Melloy reports, “‘While F1Q15 results will likely be extremely solid and March guidance could indicate continued momentum, we believe iPhone sales will decelerate more than normal later in the year,” states the note. ‘Additionally,our checks indicate that Apple Watch sales could be disappointing and other categories are unlikely to offset the slowdown in iPhone sales creating pressure on out-year estimates.'”

“Apple is a victim of its own success in a sense, according to Lamba, as it will be unable to add enough new iPhone 6 users this year to justify the company’s size,” Melloy reports.

Read more in the full article here.

MacDailyNews Take: Abney who? From where?

32 Comments

    1. Yes. However, I believe that first the Zombie population will swarm Apple and buy up all the available iPhones and Apple Watches to monitor their vitals. This will be Apple’s biggest year yet!

      Idiots! I believe they are researching this possibility and will need to start writing their retraction soon.

    2. Sounds reasonable – sarcasm, just another day of stock manipulation with a monster quarter coming our way in less than two weeks – biggest in history – so frustrating to see this so constantly !!

  1. Just another twirl on the old standby, “Decline is inevitable”. According to these analysts, something like Apple shouldn’t exist. Its stellar success is a fluke—you’ll see!

  2. Normal cyclical FUD to attempt to drive down the stock.

    But, I’m sure sales will start to diminish later in calendar 15 as the rumors of the 6-s and 6-s Plus are announced, then another record sales year, etc. etc.

    How many times have we seen, Fud,Fud, new Product, Bang, best Co ever?

  3. So…..They only make money buy selling the phone? Seem to me that I spend much more money with them after I bought the phone.. They are just fine.. The more users the more money keeps pouring in.

  4. Adding to that line of reasoning Apple stock could drop 98% if all Apple Mac & mobile devices sales ended. Microsoft’s stock could drop 99% if Windows and Office stop selling. Ford and other car manufacturers stock could drop 100% if no one bought their cars.

    I hope this was “helpful” to investors. – Your unfriendly & calculating neighborhood web-baiting doofus Anal-cysts

  5. Mizuho Securities downgraded Apple from a buy to a neutral.
    Second guessing that a product that hasn’t even been released yet will fail and that because the iPhone 6 and 6Plus did so well at Christmas that it will not sell after. Both of these guesses are completely WRONG!!! Why investors listen to such B.S. is beyond me for many reasons. What about Samsung who has nothing to offer, downgrade them and Google for putting out Android software that has 99% malware with security holes that look like swiss cheese. Those are more solid facts to go buy then second guessing with no facts to back them up with.

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