Andy Hargreaves from Pacific Crest said, “Apple is going to be trading sideways for the next twelve months.”
They are downgrading the stock to “sector perform” and giving it a price target between $440 and $550 for the next twelve months.
The high-end market for smartphones and tablets are going to be saturated sooner than expected which will lead to poor growth for Apple.
If the market for new iPhone buyers is already maxed-out, and the market for upgrading iPhones is weak, then Apple’s iPhone business is going to struggle.
An Apple television isn’t going to be a huge business like the iPhone.
It will make less money and sell in smaller units.
A cheaper iPhone will create the same problems the cheaper iPad Mini creates — cannibalization of existing sales and profits.