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The iPhone 5S and iPhone 6 may not be enough to solve Apple’s (NASDAQ:AAPL) problems, wrote Jefferies analyst Peter Misek in a research note aimed at expressing his concerns with continued weakness in Apple’s iPhone suppliers.
Misek cut both his estimate for both first-quarter iPhone sales and the company’s total revenues for the three-month period. Alongside those diminished expectations, he lowered his price target on Apple’s shares from $500 to $420. The only thing he did not slash was his firm’s investment rating on the stock, which he left at Hold.
Contributing to the analyst’s fears are his latest round of supplier checks, which brought to light to several problems for Apple; in particular, suppliers are having problems manufacturing the new casing colors – an issue that will likely push the expected June or July release back to September.
Apple’s plans for a low-cost version of its iPhone also appear to have hit a snag; Misek’s checks showed that the pricing of the new device will be in the range of $350 to $450, as some of the specifications will be more high-end than previously expected. For example, the main difference between the standard iPhone and its cheaper counterpart is its housing, the new device will feature plastic as compared to the traditional aluminum. Excluding that difference, the analyst predicts that the low-cost iPhone will have a 4-inch, incell retina display and the same processor as the 5S.
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