An analyst at Wall Street cut his price target on Apple (AAPL), following reports that iPhone 15 sales were disappointing.
Sidney Ho, an analyst at Deutsche Bank, reiterated that he still believes Apple is a buy but reduced his price target from 210 to 200.
Apple shares fell by 0.7% in midday trading today on the stock exchange to 172.32.
Ho claimed that his estimate of revenue for the September quarter was too high given signs of weak smartphone sales. Apple will release its fiscal fourth quarter results on November 2.
Ho stated in a note to clients that "the initial iPhone 15 sales have been mixed, and the increased competition in China may lead to fewer iPhone sales in this region."
The iPhone 15 is no longer in high demand
David Vogt, an analyst at UBS on Wall Street has maintained his neutral rating for Apple with a price target of 190.
Vogt wrote to clients that the iPhone 15 has finally caught up to demand.
Vogt stated that "wait times for base and Plus models have largely disappeared, and are basically in line with last year's wait times across the U.S.A., China Europe and Japan, after materially increased wait times immediately following launch."
He said, "The decline in wait times for the lower end is now similar to last year and suggests that demand continues to fall with only the Pro Max displaying any resilience."
Apple Stock News: Mac event
Apple's stock may be affected by a late-Monday product launch. Analysts anticipate that the Cupertino-based company will unveil the new iMac desktop computer at the event. Apple's M3 processor could be included in the new Macs.
Apple announced Wednesday price increases for multiple subscriptions services.
Apple raised the price of Apple TV+ from $6.99 to $9.99 per month. Apple increased the monthly price of Apple Arcade from $4.99 to $6.99. Apple News+ was also increased to $12.99 per month, up from $9.99.
Apple has also increased the price of its Apple One bundles. Individual bundles now cost $19.95 per month instead of $16.95. Family bundle is now $25.95 per month, up from $22.95. The premier bundle is now $37.95 per month, up from $32.95.
Price increases are 'underappreciated' lever
Amit Daryanani, an analyst at Evercore ISI, said in a note to clients that "Price increases represent a significant upside lever Apple could use on its products and services moving forward." He rates Apple's stock as outperform, with a target price of 210.
According to IBD StockCheckup, Apple stock received an IBD Composite rating of 80 out 99. IBD's composite rating is a combination of fundamental and technical metrics that helps investors assess a stock. The Composite Rating should be 90 or higher for the best growth stocks.