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Tuesday's Market Minute: Apple Bitten To The Core

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Tuesday's Market Minute: Apple Bitten To The Core

Apple's stock fell over 2 percent Monday as multiple bad news blows hit the company: Rosenblatt downgraded the stock to sell from neutral, citing estimates that iPhone sales would drop in 2H19, and VirnetX won a patent appeal case against the company, which could lead to a substantial payout. Apple's chief design officer, Jony Ive, also announced his resignation last week, leading to questions about Apple's continued design abilities.

These troubles come on top of the trade war and Chinese consumers shifting towards Huawei phones instead of iPhones. Some analysts say that the iPhone upgrade cycle won't begin again in earnest until at least 2020, when the rollout of 5G may begin, and to expect slowing demand until then. Did Apple's turn towards services over hardware come in time to counter geopolitical and consumer demand forces? Or will this be a difficult year for Apple, with rosier times ahead in 2020? We'll get a clearer picture when earnings are released on July 30.

Image sourced from Google

 

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