Apple Analysts Grow More Bearish on Rising Samsung Threat |
| Bloomberg - Dec 18, 2012 |
A band of Apple Inc. (AAPL)’s most bullish fans on Wall Street are growing increasingly bearish over concerns that holiday iPhone sales have been weak and that the company needs new breakthrough products to fend off rivals Google Inc. (GOOG) and Samsung Electronics Co. (005930)
At least five analysts have cut their price targets for Apple since Dec. 16, with some saying Apple’s purchases from suppliers indicate iPhone and iPad sales may not meet projections. Because the two products are Apple’s largest sources of revenue and profit, any slowdown in demand would bode ill for growth prospects.
The reports from Citigroup Inc. (C), Pacific Crest Securities, Mizuho Securities USA, BMO Capital Markets and Canaccord Genuity mark a reversal from earlier this year, when analysts were racing to issue upbeat predictions, with at least two saying Apple would top $1,000. Instead, the shares have dropped more than 25 percent from a September record amid speculation the iPhone is saturating the market, ratcheting up pressure on Chief Executive Officer Tim Cook to introduce a new hit product.
“Apple is feeling the heat,” said Michael Obuchowski, a portfolio manager at North Shore Asset Management LLC, which owns Apple shares. “There is a lot of pressure on Apple to bring new magical devices to the market, and that hasn’t happened in a while.” He said the latest iPhone and iPad mini are incremental improvements on previous devices.
Read Full Article from Bloomberg
- Posted: 2012-12-18 15:05:31
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