Jefferies Analysts Cut Apple’s Stock Price to $425; Report that the Yield of Touch ID Sensor is “Terrible”
According to a new report from Value walk, Jefferies analysts have cut Apple’s stock price from $450 to $425 per share on the back of fears that iPhone 5s availability will be constrained at launch.
Apple stock price closed at $464.90 on Friday. The stock has seen a huge downturn from highs of $507 after unveiling their new iPhone.
“Jefferies analysts were prompted to cut their price target for the shares of Apple Inc after conducting channel checks and found out that the suppliers of the tech giant started to receive production cuts,” Marie Cabural writes for Value Walk. “Their checks indicated that Apple’s iPhone 5S production is 7 million units fewer than expected in the fourth quarter.”
The main cause for the drop in shipment is largely due to issues affecting the production of the iPhone 5S is the fingerprint sensor. Jefferies said suppliers’ production volume for the Touch ID has been “terrible,” the report said.
Another reason is the pricing of the iPhone 5C. The global investment banking firm, expected a lower cost iPhone intended for consumers in the emerging markets, particularly in China. However, the cost of the new colorful iPhone 5C is similar to the price of the previous model of the iPhone, the report states.
Based on the pre-order arrangement for the new iPhone, Jefferies analysts may have a point. Apple has only allowed customers to pre-order the iPhone 5c on Spetember 13. On the other hand, customers have to wait until 20 September to buy the iPhone 5s from Apple Online Store after 12:01 am BST.