Tuesday in CE: More Apple Woes From Downgrade, iPhone 'In the Late Innings'
Despite all the success of the iPhone X launch, getting the iMac Pro off the ground, and building hype for the HomePod, Apple is leaving 2017 with a black eye.
Brokerage agency Nomura Instinet lowered its rating for Apple shares to neutral from buy, citing the company's high valuation compared with previous iPhone cycles. "We argue that the stock's gains for the iPhone X supercycle are in the late innings," the note reads. "We believe unit growth, if not quite ASP growth, is well anticipated by consensus and a historically full multiple."
Even more troubling is that Apple's services arm, is growing, but only accounts for 15% of the company's operations. In fact, we addressed that exact issue back in June, looking at just how big a liability investing in the iPhone is, even if it is paying off right now.