3 Notable Analysts Cut Estimates On Apple Amid iPhone Unit Concerns

Three notable analysts gave their reactions to Apple Inc. AAPL's latest iPhone Unit concerns cutting estimates from downside risk and expecting restrictions to be placed on the company's near-term performance.

Barclays, Morgan Stanley and JPMorgan all see iPhone unit declines.

Downside risk to Apple's iPhone unit shipments in 1H16 is expected to restrict Apple's near-term performance. While December quarter iPhone unit sales are tracking well, the March quarter figures are likely to be weaker, Barclays' technology analyst Mark Moskowitz commented.

Analysts over the past few weeks have predicted Apple's iPhone sales would slump in 2016 and have remained skeptical, but with some of the latest analyst commentary could also only be temporary.

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Moskowitz cut his 2016 estimates modestly for Apple, revising his price target down to $150, from a previous $155.

"Although Apple is well positioned to generate nearly 10 percent earnings growth in the coming years, it is likely to face several temporary speed bumps in the future. The company's long-term growth is expected to be driven by the launch of iPhone 7 in late 2016 and early 2017, share gains in the smartphone market, increasing international penetration and the establishment of more services including cloud," said Moskowitz said.

Morgan Stanley's chief financial analyst Katy Huberty noted, "Unit sales of the iPhone could drop 3 percent in the current calendar year from 2014 levels. The decline could grow steeper — falling nearly 6 percent during the fiscal year that ends next September — as the global market for smartphones continues to saturate."

"November sales signal signs of early weakness of iPhone 6S cycle." The bank lowered its forecast for iPhone units to 75 million to 77 million in the fiscal fourth quarter, down from a previous prediction for 75 million to 80 million units," JPMorgan published in a report.