UPDATE: Oppenheimer Reduces Rating on Apple, Down 7 Percent

In a report published Tuesday, Oppenheimer analysts downgrades Apple

from Outperform to Perform, removing their previous price target of $560. Apple released their earning report after Monday's close of sales/EPS of $57.6B/$14.50 beating the Street estimate. However, their guidance for the next quarter was not up to par with market expectations with China Mobile

in their back pocket. The report defends their downgrade, "iPhone missed targets including shipments (51.0M vs. Street 54.6M) and revs ($32.5B vs. $32.9B) with the Street likely overestimating the 5C ramp. Disappointing North America trends. Compressing industry life-cycles/tough competition." Oppenheimer concluded, "We see Apple now entering a lull period (like the one seen in 1H-CY13) until its next new product cycle comes into view. Near-term expansion opportunities (current products) are mostly in emerging markets, but with competition tough (especially in China) and margins/ASPs at risk of moderation, we believe investors would be cautious." AAPL closed Monday at $550.50 and is trading down 7% at around the $511.94 level.