Apple Estimates Slashed on iPhone Worries
NEW YORK (TheStreet) -- It wouldn't be a day ending in "y" if an analyst didn't have something to say about Apple
Canaccord Genuity analyst Michael Walkley has lowered his earnings estimates on Apple, citing continued worries about the smartphone market and the iPhone in general.
Walkley, who cut his price target to $530 from $560, noted that the iPhone has lost market share following the launch of the Samsung Galaxy S4. Walkley said that the Galaxy S4, which runs on Google's
The earnings cuts come despite the fact that Walkley's June survey notes the iPhone 5 continues to remain "a top-selling smartphone at essentially all global carriers."
The analyst cut iPhone estimates for the September quarter to 28 million from 30 million, despite the fact he still expects Apple will start shipping the iPhone 5S in late September. He also took down his 2014 iPhone estimates from 181 million units to 173 million units. As a result, Walkley lowered earnings estimates for fiscal 2013 and 2014. He now expects Apple to earn $39.29 a share in fiscal 2013, and $44.04 a share in fiscal 2014.
Analysts surveyed by Thomson Reuters expect Apple to earn $39.50 a share in fiscal 2013, and $43.54 a share in fiscal 2014.
Longer-term, it's not all bad for Apple. Walkley believes that the tech giant will continue to have a strong product pipeline, and be able to refresh the iPhone and iPad lines with the iPhone 5S, a low-end iPhone and new iPads, led by an all-new design for the larger iPad, based off the popular iPad mini.
Apple reports fiscal third-quarter earnings on July 23. Analysts polled by Thomson Reuters are looking for the Cupertino, Calif.-based firm to generate $7.33 a share in earnings on $35.165 billion in sales.
Shares of the tech giant were lower in early Wednesday trading, off 0.5% to $420.22.
--Written by Chris Ciaccia in New York
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