Markets Insider
- Apple is slipping after Morgan Stanley analyst Katy L. Huberty downgraded the stock, citing weakening demand in China.
- The smartphone market at large may be seeing a drop in demand, as Taiwan Semiconductor reported a weak sales outlook Thursday.
- And LG Display, a smartphone screen maker, is having manufacturing problems and isn't producing enough screens.
- Watch Apple stock in real time here.
Apple shares are falling Friday, dropping more than 3% to an intraday low of $166.74.
That's after Morgan Stanley analyst Katy L. Huberty downgraded the stock, citing softer iPhone demand in China, which could lead to a weak June.
Huberty lowered her iPhone shipment estimates by 7 million, citing "continued weakness in China data." She also lowered her June quarter iPhone shipment estimate to 34M, which is 20% lower than Wall Street's consensus.
Huberty lowered her price target from $203 a share to $200 a share, but did say to "buy any post earnings dip."
In related news, The Wall Street Journal reported that South Korea's LG Display is struggling to produce enough high-end smartphone screens, as the company is experiencing manufacturing problems.
Also, a weak sales outlook Thursday from Taiwan semiconductor suggested that smartphone demand is dropping.
Apple is down 2.47% this year.
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