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Market Analyst Paints Bleak Image of Apple iPhone

Apple has immediately developed into one of the most polarizing shares in a market on Wall Street. Shares of Apple fell over 2% Monday after an analyst at Rosenblatt Securities downgraded the iPhone maker’s share to a “sell.”

Three analysts now rank Apple’s shares a “sell,” based on information from Refinitiv. Another 18 analysts have Apple (AAPL) marked a “hold” — which many on Wall Street view as basically the same factor as a sell. And 23 analysts assume Apple is a “buy.”

Today, the Apple bulls nonetheless appear to have the upper hand. The share is up over 25% this year, making it the most active performers in the Dow thus far in 2019.

However, Jun Zhang, the Rosenblatt analyst who deprecated Apple on Monday, paints a fairly dismal image for Apple for the rest of the year.

“We consider new iPhone sales shall be disappointing, iPad sales progress will gradual in the second half of 2019 [and] different product sales growth, including HomePod, AirPod, and iWatch, may not be significant to support complete revenue gains,” Zhang wrote in a report Monday.

And although service sales development has been stable for many quarters due to Apple Music and Apple News, he believes that progress will start to slow down.

It is notable that Zhang — whose official title at Rosenblatt is China analyst overlaying media, tech, and telecom — didn’t cite any particular concerns about Apple sales in China. Apple’s warning on that market stunned traders earlier this year.

Another analyst who looked at China demand came away with a much more bullish outlook for Apple.

Ives calculates that between 60 million and 70 million Chinese shoppers would need to upgrade to a more modern iPhone over the next 12 to 18 months.

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