Analyst downgrades Apple to sell because iPhone X is too popular

“The iPhone X is so popular that it just might wind up hurting Apple down the road,” Thomas Franck writes for CNBC. “It has been so successful that more and more iPhone users are upgrading early, eating into demand for future generations, according to New Street Research.”

“The vacuum in sales will be so great that investors should sell the stock, analyst Pierre Ferragu said in a note Monday,” Franck writes. “‘We expect a material disappointment in 2019,’ Ferragu said. ‘The iPhone X has been very successful and well received by consumers. It has been so successful, that we think it has brought forward demand.'”

“iPhone users upgrading early ‘will drive an ‘air pocket,’ and the introduction of a lower-price premium OLED phone won’t be enough to make up for the shortfall,’ the analyst added,” Franck writes. “New Street expects iPhone revenues in 2019 will be 10 percent below the Wall Street consensus. For his part, Ferragu believes that Apple’s 2019 and 2020 earnings per share will be 9 percent and 6 percent below the average analysts’ projections, respectively. Shares of Apple fell 0.8 percent on Monday. New Research’s price target of $165 represents roughly 25 percent downside from Friday’s close at $217.58.”

Read more in the full article here.

MacDailyNews Take: iCal’ed for future use.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

43 Comments

        1. All Americans seem to use the phrase “I could care less” which of course makes no sense. Here in Britain we use equally silly phrases like “cheap at half the price” which is also nonsensical. People incorrectly say “In one foul swoop, instead of the correct fell swoop”. The problem is only going to get worse (or better depending on your point of view) as the internet is causing a soup of billions of ideas and interpretations for language. Mark my words “you’ve all got another think coming” 😉

    1. What’s interesting is that there’s other investors who have voted with their wallet differently.

      For example, the Gotham index Plus Fund (GINDX). Its an interesting strategy of a portfolio of longs which are balanced against a bunch of shorts to hedge against downside risks. Guess who their #1 “Long” stock is? Yup, APPL.

      FYI, for anyone now contemplating a longer look at Gotham, do be aware that their minimum starting investment is a “mere” $250,000.

  1. This is fucking stupid. And also yet another recycled bs ‘analysis’ that’s been stated about iPhone 4, iPhone 5, iPhone 6, iPhone 7, and now iPhone X. Honestly, why the fuck do these things get printed.

    1. Man, you know this has been ANALysts 101 for Apple since 2007. I guess they have gotten bored with supply chain sources “reductions in production”. Between supply chain checks, too reliant on iPhone sales, too few iPhone models, iPhone X is too expensive. I guess this year if they come out with the 4 models with a cheaper iPhone, it will be Apple has too many models and the cheaper one will bring down margins. LOL

  2. Manipulation, manipulation. Plain and simple.
    Brian White P?T $273. I always paid higher prices when repurchased AAPL, Rather stick with Brian White P? $273.

  3. This might actually be the dumbest thing I’ve ever read. Pierre Ferragu should be embarrassed. If anyone is dumb enough to trust their money to this guy, they don’t deserve having money.

  4. His future outlook only sounds counter-intuitive but it’s not. The highly variable output produces a lot of sales in one quarter but low sales the next. This outcome is bad only for bloodsuckers/investors, not for Apple the corporation’s ability to grow its hoard of money.

    1. you are truly a lost case .. aren’t you..
      I investors are blood suckers..?? …Lol…

      Without investors there would have been no Apple or any other buisness for that matter …….
      But im sure Artists and alike would still roam around clulessly … living in their lala land .. expecting handouts…..

      1. Just to clarify something about my post..
        In the last line i meant Artist .. ( not Artists) refering to JD, Artist ….the person i was responding to..
        There is a big difference…

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