Apple: New Street Research downgrades to 'sell'

(CercleFinance.com) - New Street Research has downgraded Apple today on material near-term concerns, saying iPhone demand could weaken further over the next few years.


In a note on Monday, the independant research house reminds investors that iPhone demand usually reaches a peak followed by an "air-pocket," with the iPhone X not set to be an exception to this.

According to New Street Research, shipments and average selling prices could be materially down next year, even if the likely introduction of a lower price OLED iPhone should mitigate this negative effect.

In all, analysts expect iPhone revenues to be almost 10% below expectations for 2019.

As the stock "doesn't like iPhone disappointments," New Street Research expects a material pull-back of the share, towards the 165-dollar mark.

The stock is currently flat, with the US stockmarket up 0.5%.



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