(FinancialPress) — Apple Inc.’s (AAPL) German shares were stunted in early trading after JPMorgan released an analyst note saying that the iPhone X is experiencing a worryingly weakening demand. This, they expect, will have a ripple effect that will reach the tech giant‘s European suppliers.
AMS AG – a critical supplier for the Cupertino-based company‘s operation in Europe – stock got downgraded by JPMorgan from neutral to overweight. The firm expects weakening demand to drag on into the second semester of 2018. The Austrian company‘s stock dipped a full 7.58% in early European trading, reaching a value of €78.04.
Apple‘s own European stock lost 1.51% of its value in early Frankfurt trading.
Atlantic Equities analyst James Cordwell too lowered his rating for AAPL from neutral to overweight, but kept his price target at $190 and noted that the flagship iPhone X did experience healthy demand over the holidays – but feels that the trend may not persist going deeper into 2018.
“We believe a major component of the likely strength in the December quarter versus consensus is the fact that iPhone X supply improved much more quickly than we had anticipated,” Cordwell wrote. “”This better than anticipated supply means that a greater proportion of demand was able to be served in the December quarter, leaving March quarter expectations (which were predicated on significant pent-up demand) for ~20% iPhone unit growth now looking somewhat aggressive.”