Investors of Apple were alarmed on Thursday when research showed that the iPhone line-up has reached its peak when it comes to interest from the consumer reports Yahoo.
iPhone 5 not as hot as iPhone 4S (report)
Apple shares last month were down 25% for the high in September of $705.07 and this has led investors to start panicking about the future of Apple. While the stock did come back a little in late November, a new reports says that the biggest money earner of Apple, the iPhone, could have turned sour.
Analyst Steve Milunovich cut down the estimates for the fiscal year of 2013 and 2014 for Apple. Along with this he dropped the target on shared to $700, originally he has said $780.
The trimming means iPhone 5 sales were down by 5 million units and this wasn’t the most alarming thing (this came by way of his supply chain sources). The analyst said that, “some of our Chinese sources do not expect the iPhone 5 to do as well as the iPhone 4S.”
Production of the iPhone could drop to 25 million handsets during the first quarter of 2013 and this doesn’t bode very well for sales in June. Of course things could change if Apple were to launch the iPhone 6 in the summer.
The analyst said that he thinks Apple will get around $47 per share during fiscal 2013, this would be down from the $51.50, and he also thinks that the 2014 fiscal earnings will be down to $55.85 per share, from the estimated $62.
Apple share went down more than 3% on Friday morning at $511.76.
The iPhone 5 has been discounted repeatedly this year already, which is surprising for an Apple product, especially since it is the latest model. Radioshack has discounted the iPhone 5 to $149 on a contract, while Walmart has taken it all the way down to $127.