An analyst from Rosenblatt Securities told CNBC on Wednesday that the firm downgraded Apple not because of China tariffs but for reasons relating to Apple's slow growth in production sales and 5G networks.
not because of China tariffs but for reasons relating to slow growth in production sales and a delay in the rollout of 5G networks.the tech giant in July to sell from neutral. The firm said Apple will "face fundamental deterioration over the next 6 to 12 months" as product sales slow down in the second half of 2019. It maintained its 12-month $150 price target.
"We expect Apple [to cut] production for the December quarter because of continued weakness in iPhone sales. The second reason is Apple lags behind the 5G cycle. When you look at next year, China is going to be the largest 5G market. That will leave Apple [to] continue [to lose] shares in China so I don't think Apple's 5G [network] will be heading next year," said the analyst.
On the other hand, Krish Sankar from Cowen remains bullish on the tech company. The firm's $250 price target represents a 19% increase from Tuesday's close.
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