Apple Inc. (AAPL) Stock Price Target Slashed on iPhone 8 Hype

Apple stock

Apple Inc. (NASDAQ:AAPL)’s 10th anniversary iPhone is creating quite the buzz. However, the over-hype around the phone is ruining Apple’s business outlook, as per Barclays’ analyst Mark Moskowitz.

‘Subdued’ revenue outlook for Apple

There is still a lot of time left before the iPhone 8 release, but a lot of excitement is building up around the phone regarding its rumored features and specs. Based on this hype, Moskowitz has slashed the price target by 1.6%. The analyst believes that Apple’s new iPhone will only minutely help in “overcoming the existing challenges” faced by Apple in the smartphone business.

Moskowitz believes the outlook for iPhone revenue for the current year is “subdued.” “Smartphones in general have evolved technologically to become more than good enough to serve most users’ digital needs over multiple years or until the device breaks,” the analyst says. However, Wall Street is expecting major surge in sales.

“Our conversations with industry participants have painted a somewhat subdued outlook for both the iPhone’s revenue growth and mix profiles,” the analyst says. Moskowitz thinks that Apple Inc. (NASDAQ:AAPL) should focus on investing in India, and expanding its Service business. Further, Corporate and Artificial Intelligence also hold potential, the analyst believes.

Analyst also believes that Apple’s growth in China will “splutter” this year. Also, one must not forget the string on new Android devices coming up in the recent months.

iPhone 8 – what to expect?

Apple is expected to celebrate the 10th anniversary of the iPhone launch with extra special features. Rumor mills are abuzz that the firm is bringing all glass body with a curved display to a transparent iPhone. It is expected that the firm will remove the fingerprint reader for facial recognition, and all physical buttons will be replaced with Force Touch. The Cupertino-based firm is expected to come up with an iPhone 7S, 7S Plus and iPhone 8 this year, with the S variant being an upgraded version of the iPhone 7.

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There was a lot of hype around the 2016 MacBook pro after Apple kept the same design and minimal performance tweaks for years. However, there was nothing new to offer. As per the analyst, consumers have no issues in going for older iPhone 6S over the latest iPhone 7 as the later does not offer much over iPhone 6S.

So, it remains to be if the iPhone 8 will be a game changer for Apple Inc. (NASDAQ:AAPL) considering all the rumored features such as end to end OLED screen, wireless charging and so on.

On Tuesday, Apple shares closed down 0.09% at $119.97. Year to date, the stock is up almost 4% while in the last one-year, it is up over 18%. The stock has a 52-week high of $120.81 and a 52-week low of $89.47.

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Aman Jain

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.
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