It is worth mentioning that this is the first time that Apple has issued a profit warning for more than 10 years, and Wall Street has reason to be worried.
Morgan Stanley(Morgan Stanley) lowered Apple's target price to $211 (previously $236), saying that the extended cycle of Chinese consumers upgrading their smartphones is the main reason for Apple's difficulties in China. The representative of Morgan Stanley said: "The Chinese market is following the footsteps of the US market, extending the smartphone replacement cycle and slowing down overall market growth."
Wedbush SecuritiesiPhoneThe future growth is optimistic, but he calls it "the darkest day for Apple in the iPhone era." Wedbush has reduced Apple's target price from $275 to $200.
Bank of America Merrill Lynch(Bank of America Merrill Lynch) believes: “Although trade tensions with China may be eased in the first quarter of 2019, broader demand weakening and a slower upgrade cycle may result in a significant drop in iPhone production in 2019. The company also lowered Apple's target price to $195 (previously $220).
FuGuo bank(Wells Fargo) lowered Apple's target price from $210 to $160, and pointed out that "Apple's negative performance will undoubtedly have a profound impact." See if Apple will be different in the next quarter, or whether Apple is different It will be very interesting to issue a second revenue warning in a row.
Goldman(Goldman Sachs) also cut Apple's target price from $182 to $140 on the grounds that Apple is more susceptible to the complex effects of macroeconomic changes than most other companies. The investment company further explained: "We are only signaling to investors that we believe the replacement rate of the company's iPhone may be more sensitive to macroeconomics, given that the market penetration of Apple's iPhone is approaching its highest level."
Stock research companyLongbow researchThe response to Apple’s downward revision of its performance expectations is more straightforward than most analysts, saying Apple is over-reliant on iPhone sales. Longbow Research said: "China's leading sales gap clearly shows that new products, high-margin services and increased return on capital growth are currently not enough to ease the sharp decline in iPhone demand."
Citibank(Citi bank) lowered Apple's target price to $170, down $30 from the previous $200, and pointed out that the trade war between China and the United States is another very obvious reason for Apple's sales decline. Citi’s representative said: “The trade war is not good for technology stocks, and we are surprised by the negative impact of the Chinese market on iPhone demand.”
One of the largest financial institutions in CanadaBank of Montreal Capital Market(BMO Capital Markets) is also very pessimistic about recent developments, saying that Apple’s revenue warnings are worse than the company’s initial concerns. The Bank of Montreal Capital Markets said: "We have been cautious about the ability to launch the new iPhone driver upgrade cycle, especially in China. The quarterly results in December last year were worse than we expected."