UPDATE: Jefferies Downgrades Apple to Hold on Margin Pressure

Jefferies downgraded Apple

with a Neutral and lowered the price target from $800.00 to $500.00. Jefferies commented, "Three factors are working against Apple: 1) Smartphone and tablet growth is becoming more concentrated in the low end of the market. 2) Increased competition is leading to shorter product cycles. Apple's margins usually contract during new product launch as yield issues are worked through. A quicker cadence leaves more compressed quarters and less time to harvest profits. 3) Moving away from Samsung, with its huge scale, high quality and excellent execution, is proving difficult and expensive. We now forecast GMs staying below 39% and trending lower." Apple closed at $514.01 on Wednesday.