It is raining trouble for Apple stock as more analysts turn against Apple, Citi’s analyst Glen Yeung believes that Apple’s iPhone 5 sales are sizzling out rapidly as product line shows decrease in manufacturing. Glen says that though supply chain activity is strictly not the measure of how well a product is doing we cannot expect too much stock to be already manufactured either and thus suspecting a softer demand for iPhone 5 and iPhone 4S. We also got to witness a recent report about iPad mini cannibalising the sales of iPad, apart from that analysts reduced the overall sales expectation of iPads as well earlier.
Glen reduced his sales expectation of iPhones for the current quarter to 34 million where Wall Street still is optimistic with an expected sales of 37 million for the current quarter. Due to various reasons Apple is set to not reach its self set revenue this quarter, Glen predicts that Apple might well miss its target by over a billion dollars!
In the past few months we witnessed a severe crash of Apple’s stock price as it could not meet analysts expectations but this might be the first quarter in the last few years where Apple might be missing its self set target. There might be various reasons for it, for one, it might be because of Apple clearing out its inventory well before launching the next generation iPhone.
If rumours turn true Apple might be releasing the low cost iPhone which might please the analysts again but few analysts say that Apple’s stock is bound to go further below as there are good chances of iPad mini sales to fizzle out as well in the coming months.