Apple’s iPad SUCCESS Gets These Companies DOWNGRADED

Apple (NASDAQ:AAPL) recently unveiled its much anticipated iPhone 5 at a special conference in San Francisco. Before the announcement, the company provided an overview of its products and even tooted its own horn a bit. A recent round of downgrades from Citigroup (NYSE:C) recognizes Apple’s success in the tablet market, and the relative failures of other tech companies.

Tim Cook, Apple’s CEO, took the stage and noted how well-received the company’s products were among consumers. Through April to June, a whopping 83 million people visited Apple stores across 12 different countries. Apple’s notebooks are now ranked number one in the United States, with 27 percent of the market share. Over the last year, the Mac has witnessed 15 percent growth, while PC has only seen 2 percent. The iPad’s success has been even more impressive. Last quarter, the company sold 17 million iPads. In fact, there were more iPads sold than computers by any PC maker.

Don’t Miss: Here’s How the Apple iPhone 5 SCREWED With Day Traders

The shift away from PC is affecting the outlook for several companies. Due to the weakness in PC demand, Citigroup analyst Glen Yeung downgraded his ratings on Intel (NASDAQ:INTC), Advanced Micro Devices (NYSE:AMD) and Nvidia (NASDAQ:NVDA) to Neutral from Buy.

Yeung explains, “While these names are down noticeably in recent days, prompted by a noticeably weak August and punctuated by Intel’s recent pre-announcement, our downgrade today reflects our checks in Asia that stoke our concerns that the intermediate term prospects for PC’s do not look optimistic,” according to Forbes. Robbed of catalysts, we see limited likelihood PC-related shares will appreciate meaningfully in coming months, despite valuations.”

For next year, he predicts PC units will decrease 1 percent, compared to his prior forecast for 4 percent growth. Yeung does not believe the upcoming launch of Microsoft (NASDAQ:MSFT) Window 8 will be enough to spark the PC industry. “After an initial build recovery in September and October, we suspect PC-related builds will again soften from November onward,” he writes. In addition to the downgrades, he also reduced price targets across the board for the companies, including Marvell (NASDAQ:MRVL).

Investor Insight: Will the iPhone 5 Be ENOUGH for Apple or Shareholders?

Apple has been a huge winning stock pick for Wall St. Cheat Sheet Newsletter subscribers. Don’t waste another minute — click here and get more of our CHEAT SHEET stock picks now.