Apple Falls on BAC Analyst Projection of 8 Million iPhones Sold
The hot debate on whether Apple can meet its own projection of 10 million iPhones sold in ’08 continued on Monday when Banc of America ( BAC ) analyst Scott D. Craig reported his estimate of 7.96 million units for calendar ’08. In a research note to clients, Craig cited softer than expected short term demand for both iPhones and iPods, following checks on Asian suppliers. Craig added that iPhone “demand in the U.S. may have been impacted by the anticipation of a new 3G phone and that European demand for a non 3G iPhone remains lackluster.” Craig cut his price target on Apple ( AAPL ) stock from $180 to $160.
In a separate downgrade on Monday, Mike Abramsky of RBC Capital Markets also lowered his price target on Apple stock from from $200 to $175 based on “economic and growth concerns”. Abramsky nonetheless believes that the 3G version of the iPhone, expected by mid ’08, will sell briskly with wide overseas adoption of its high end video features on fast 3G networks. Abramsky estimates Apple will beat its projection of 10 million iPhone units sold by a wide margin of 1 million.
The downgrades by the two had a combined negative effect on Apple resulting in the stock closing at 121.73, down by more than $3 on the day.