Apple, Less Sales and Cuts by Analysts
That profit warning confirmed the difficulties that the Cupertino-based company is experiencing. At the end of November, with the presentation of results for the third quarter of the year, Apple advanced that they would not offer the data of devices sold again. This Tuesday, therefore, will be the first time that in an exercise do not appear the sales data of the phones.
The situation of the company led by Tim Cook has changed drastically. A few months ago, Apple sported muscle and its market capitalization surpassed the prestigious trillion dollar line.
With the beginning of 2019, the reality is very different and Apple is worth 732,000 million dollars. It was early October when the action hit record highs with $ 232 per title. Since then, it has not stopped falling on the floor and the company is worth 35% less than just 100 days ago.
With this scenario, investors will be awaiting the explanations of Tim Cook in the conference he will give once the results have been presented. In this regard, Investing.com analyst, Haris Anwar, points out that “the two most important things that investors would want to hear from the CEO will be how he will revive sales growth when customers are not willing to buy iPhones more expensive, and what else they have in the pipeline to compensate in the total sales of the company the collapse of its flagship product “.
Goldman Sachs (NYSE: GS) lowered its price from 182 to 140 dollars per share. “The iPhone is becoming a real luxury and that is why consumers are reluctant to update their old iPhone, kept your computer for several years and not change it year after year,” said in a recent report the analysts of the firm.
The same happened with Citi. Analysts lowered the target price from $ 200 to $ 170. Bank of America (NYSE: BAC) also added the price of the shares at $ 195, instead of the $ 220 previously set. The last one to jump on Apple’s ‘discount’ car was Morgan Stanley (NYSE: MS), which cut the value of the shares from $ 236 to $ 211.
In addition, as it is extracted from the consensus of analysts of Thomson Reuters, the objective price that puts the consensus is of 178 dollars, when only a few weeks ago they brushed the 240 dollars. That is to say, the titles of Apple have suffered a cut of almost 25%.
With an unpleasant scenario, Apple seems determined to renew its range of ‘gadgets’ to increase its sales. As revealed by The Wall Street Journal, the company of the bitten apple plans to launch three new models whose strong point would be the high potential of the rear cameras. In turn, the American company prepares a ‘smartphone’ with a lower price to try to attract the lost audience because, as explained by Goldman Sachs, consumers perceive it as a luxury item.