Story Highlights
- Concerns over supply chain orders persist for iPhone 5
- Citi downgrades stock to “neutral” from “buy” in the report
- iPad Mini seen to cannibalize iPad 4
UPDATE: Apple shares closed at $517.99 on Monday, up 1.6%.
SAN FRANCISCO — Financial analysts dissecting Apple’s prospects are concerned over its moneymaker iPhone 5 and its iPad Mini.
The latest caution comes from supply chain order cuts that “bring into question the strength of iPhone 5 and refocus investors onto risks in the Apple story,” wrote Citi analyst Glen Yeung in a note to clients.
The analayst downgraded the stock to “neutral” from “buy” in the report from Sunday.
Shares of Apple rose 0.62% to $512.95 in midday trading today.
Apple on Monday reported that its first weekend of iPhone 5 sales in China exceeded 2 million.
Citi’s analyst also pointed to gains from Apple’s iPad Mini. It expects “strength of the iPad Mini” that comes at “the expense of the iPad 4.” The firm says iPad Mini production is seen jumping to 12 million to 14 million units in the March quarter while iPad 4 units decrease to 5 million to 7 million.
The problem there is that Apple’s iPad Mini has lower profit margins.
Citi lowered its price target to $575 from $675.
Canaccord Genuity on Sunday lowered its price target to $750 from $800. The firm expects slightly lower iPad and iPhone sales in Europe in particular.
About the Author
Scott Martin
Scott Martin is a USA Today technology reporter based in San Francisco. His coverage focuses on the so-called Gang of Four of tech: Apple, Google, Facebook and Amazon. Contact him with news tips at ssmartin@usatoday.com or follow him on Twitter at @scottysmartin.
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