Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales

“Apple’s iPhone sales in the June quarter will significantly disappoint versus Wall Street expectations, according to Morgan Stanley,” Tae Kim reports for CNBC. “But the firm says any drop in the stock from poor results will be a great buying opportunity.”

“Morgan Stanley lowered its June quarter iPhone unit estimate to 34 million from 40.5 million versus the nearly 43 million average forecast,” Kim reports. “‘We expect Apple to report an in-line March quarter, but are cautious into earnings on May 1 due to our belief that June quarter consensus estimates need to be revised lower,’ analyst Katy Huberty wrote in a note to clients entitled ‘Cautious Into The Print; Buy Any Post-Earnings Dip’ Friday… Huberty cited her poor checks with Apple’s iPhone suppliers and weaker than expected data from China for her estimate reduction. She noted Apple smartphone activation share fell in China so far this year through March.”

“Despite her negative iPhone forecast the analyst reiterated her overweight rating for the company’s shares, saying investors should add to Apple positions in any post-earnings stock decline,” Kim reports. “The analyst lowered her price target to $200 from $203 for the company’s stock, representing 16 percent upside from Thursday’s close.”

Read more in the full article here.

MacDailyNews Take: Chopping 6.5 milion iPhone units off a quarterly estimate is certainly attention-getting.

We shall see on May 1st.


  1. When will someone begin publishing a single list of analysts’ reliability-ratings? If nothing else, such a list would cause concern and caution by analysts who make predictions merely to generate attention or “hits”. Maybe this is something MDN is uniquely qualified to do?

  2. The main buying opportunity will only be for Apple as it purchases more shares of its own stock. No one else will be buying it at least for the short-term. I find it quite disappointing how Apple is sitting on so much cash and isn’t able to find a way to pull the stock out of such negative views. Apple’s near total dependency upon the iPhone is absolutely mind-numbing considering Apple’s cash resources. I realize Apple doesn’t care much for updating their computer line-up but they should do something to offset iPhone sales losses if these stories are true.

    I’ll be glad if Apple actually does get into the video streaming business because it might make things a little easier for Apple to gain revenue. AAPL seemed to be doing rather well for the past month or so and now it’s all gone downhill in a couple of days. It’s really odd how weak the stock is based on supply channel checks.

  3. APPL getting absolutely CRUSHED today by Wall Street investors. Barely 30 minutes into trading today and Apple is down -$6. That after a huge loss yesterday means heavy losses for investors who are trying to ride it out. I am out tens of thousands of dollars. I am SOOOO underwater with APPL stock. Really my worst trade of all.

    Apple stock just keeps falling and falling and falling.

    1. You’re only losing if you are foolish enough to sell when the price is artificially low.

      If you were to buy right now, you would stand to make a decent profit when sanity returns.

      I’ve been investing in APPL for many years and have regularly seen these fluctuations, especially in the run-up to quarterly financial report time.

      Sit tight and don’t panic. Just remember that it’s going to be exactly the same in three months and then six month’s time. Save up your spare cash in anticipation of buying opportunities.

  4. Apple is not a one trick compagny. Anals make it look like this.

    Long term here. Buy more share soon. The end of the year will reward. ETA : 195 at the end of the year still. Play the game if you have the nerve to sell high and buy low. Best stock to do it.

    Apple is not sleeping. Apple is a big boat. A big boat doesn’t move as fast.

  5. Wash, rinse, and repeat.

    Same bullshit different day. Some analyst is hedging their bet to make a name for themselves so they can look good and point to negative stories and say, “see, I told you so”.
    Some Taiwanese company is projecting weaker sales forecast but, it doesn’t say from what or whom. Why do they assume it’s Apple? Android sales have already been shown to be weak. Again, it’s all bullshit.

  6. Earnings in 10 days… which will include announcement of what Apple plans to do with their massive cash hord.

    Some manipulaters want in .. but not near all time high… so massive effort is going on to shake out the loose hand and lower the stock…

    September line up is going to be where the super cycle truly kicks in …

    6.1 and 6.5 will be huge ..
    add 1.3 billion customer base and growth in services.
    I also have a feel there will be a surprise new product in the lineup.

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