Skip to main content

Market Overview

Apple Shares Dip After Rosenblatt Downgrade

Apple Shares Dip After Rosenblatt Downgrade

For the second time in as many trading days, Apple Inc. (NASDAQ: AAPL) received a sell-side downgrade.

The Analyst

Rosenblatt Securities' Jun Zhang downgraded Apple from Buy to Neutral with an unchanged $200 price target.

The Thesis

The bullish case for Apple can no longer be justified as higher iPhone average selling prices (ASP) led by the iPhone Max won't be sufficient to offset weaker volume in the back half of 2019, CNBC reported the analyst as saying in a note.

Management's guidance for the calendar fourth quarter reflects the analyst's cautious stance of weaker than expected sell-through and production reductions for the higher-end iPhone XS and iPhone XR. In addition, Apple is likely to reduce its iPhone production rate by six million units.

Rosenblatt's downgrade follows a report from Nikkei Asian Review which cited unnamed sources and claims Apple told two of its smartphone assemblers, Foxconn and Pegatron, to stop adding production lines for the iPhone XR model. The publication said Apple's move could translate to 100,000 fewer phones manufactured per day by Foxconn alone.

Price Action

Shares of Apple were trading lower by 3.7 percent to $199.78 at time of publication.

Related Links:

Analysts Break Down Key Issues From Apple's Q4 Print

3 Reasons To Love Apple Right Now: iPhone, Services, Wearables

Latest Ratings for AAPL

Apr 2021BarclaysMaintainsEqual-Weight
Apr 2021Monness, Crespi, HardtMaintainsBuy
Apr 2021Credit SuisseMaintainsNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: iPhone iPhone ASP Jun ZhangAnalyst Color Downgrades Top Stories Analyst Ratings Media Best of Benzinga

Latest Ratings

RXRXB of A SecuritiesInitiates Coverage On31.0
TSPWolfe ResearchInitiates Coverage On
CMPSCantor FitzgeraldInitiates Coverage On71.0
KRTDA DavidsonInitiates Coverage On24.0
XMorgan StanleyUpgrades32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at