Apple shares drop after Nomura cuts rating, lowers outlook

“Apple Inc. shares fell 1.2% to $174.25 on Tuesday, Dec. 19, following a report that suggested sales of its flagship iPhone X may not be robust enough to top Wall Street forecasts as customers turn to cheaper models and shun the $1,000 price tag,” Martin Baccardax reports for TheStreet.

“Instinet, a division of the Japanese investment bank Nomura, lowered its price target on the tech giant by $10 to $175 and cut its rating on the stock to ‘neutral’ from ‘buy,'” Baccardax reports. “Analyst Jeffrey Kvaal also trimmed his full-year earnings per share forecast by 25 cents to $11.50 and lowered his estimate for iPhone sales over Apple’s financial year, which ends in September, to 245 million units from a previous target of 265 million.”

“The downbeat forecast for iPhone X sales echoes similar concerns on Wall Street that Apple’s decision to stagger the release of its anniversary edition six weeks after the launch of its iPhone 8 and iPhone 8-plus models may have trimmed consumer demand,” Baccardax reports. “Others have suggested the $1,000 price tag is keeping buyers from stretching to the anniversary edition, given that its features are not substantially different from the current iPhone 8.”

MacDailyNews Take: The rampant stupidity of those two sentences is appalling.

See also: Apple is still selling over 1 million iPhone 8 and iPhone X units Per Day – December 18, 2017

“Earlier this week, analysts at Cowen & Co. noted that shorter customer waiting times for the iPhone X could signal tepid Christmas demand,” Baccardax reports, “but still noted that it holds to the Street consensus of 79 million iPhone unit sales over the three months ending in December.”

Read more in the full article here.

MacDailyNews Take:

We believe slow carrier promotions and relatively modest feature upgrades to the 8 are shifting demand to the X, which is a positive for Apple. — Instinet analyst Jeffrey Kvaal, September 17, 2017

Moral of the story: Don’t believe everything you read, but you can certainly profit from painfully obvious and exceedingly transparent fomenting.


  1. “as customers turn to cheaper models” you mean the models that were all they sold previously, the iPhone X being a completely new price point. It’s not as if customers were buying these phones for years and have now decided to spend less. People might not be upgrading as frequently and thus sales of the iPhone X would offset that loss of revenue, but that’s a different thing. Availability times really mean nothing on their own, unless you know exactly how many they need to be making and how quickly they’ve been ramping up production you just don’t have enough information.

  2. I’m not surprised. I knew this would happen to Apple shareholders in some form. I just thought CNBC would find a couple of talking-head hitmen to stick it to Apple. As I expected, there are hasty investors quickly dumping Apple stock.

    Apple’s soon to be repatriated cash appears to have no value at all as far as Wall Street is concerned and that totally blows my mind. How many companies are able to pull back a mountain of reserve cash? If Apple only pulls back half of that cash even after taxes it will be quite a bit of free cash to spend on whatever Apple sees fit. Be it acquisitions or dividends or some share buybacks. Yet that cash doesn’t seem to add any value to Apple. I honestly thought there were more ways that a company can gain in overall value than just high growth.

    About Apple’s share price is “baked in.” How does that work when it comes to indeterminate iPhone sales? If Apple exceeds a more than expected amount of iPhone sales, how can that be already baked in?

    Anyway, I expected Apple to get screwed over while the FANG stocks continue to fly high, so this report isn’t a huge shock. As long as Apple continues to increased dividends, I’ll just have to deal with Wall Street’s disdain for Apple.

  3. Dear lord…iPhoneX or 8…still buying an iPhone..if they wanted to sound informed…they could at the very least talked about profit margins between the two..but it’s still a sale for Apple. The comment about the X not being significantly different is obviously born from having no experience with the X…very different phones.

  4. I just upgraded my 5 to the X, and moved my kids 2, 5c’s over to 8’s. Doing my part, totally happy with my purchases. Quality and the best smart phones you can buy. You get what you pay for…

  5. Usual par for the course. These reports come out all the time. Apple may already have inventory for the components the company provide and are scaling back orders for later in 2018.
    I find the earlier report more compelling that activation rates are 1M a day. That is more telling about current sales rate than a component supplier forecast.

  6. Mind boggeling how these anal-cysts can so easly manipulate a stock with nothing more than just pure Bull Crap..
    Hey people/investors… these people are not in the buisness of looking out for you….!

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