Although some analysts believe that Apple is off to a decent start with its new iPhone range, Rosenblatt Securities said yesterday that the company’s share price might drop because iPhone 11 preorders are not living up to expectations.
Apple’s share price has so far surged by 40% since January, with many investors expecting further increases in profitability after the firm’s strategic decision to focus more on services.
A week ago, the company announced details of its soon-to-be-launched Apple TV+, as well as the Apple Arcade gaming service.
At the same event, Apple also announced the iPhone 11, which comes in standard, Pro and Pro Max versions.
The new range offers better camera quality, faster processors, and improved battery life.
Preorders for the iPhone 11 opened last Friday, and stores will start selling these devices this coming Friday.
Yesterday, Jun Zhang, an analyst at Rosenblatt Securities, nevertheless confirmed his Sell rating for Apple stocks.
To back this up, he quoted poor preorder data based on information supplied by retailers as well as his analysis of waiting times.
Other analysts, however, believe that the new range was off to a “good start”.
Apple’s share price increased by 0.2% yesterday to reach $219.17 against a backdrop of the Dow Jones Industrial Average losing 0.5%.
Zhang remains convinced about his data though: yesterday, he reconfirmed his price target of $150 for Apple’s share price – i.e. nearly 30% lower than the current level.
Most investors remain hopeful that Apple will be able to compensate for the plunge in iPhone sales with growth in its services division.
However, this might prove to be an unreachable goal in the long run for the Cupertino-based company.
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