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Concerns that Apple (NASDAQ:AAPL) may not be selling enough iPhones this quarter spilled over into Tuesday after Nomura Equity Research slashed its price target on the company’s stock from $660 to $530. Analyst Stuart Jeffrey, who also cut earnings and revenue predictions, wrote in a note to clients that the newer targets were to “reflect signs of weaker-than-expected iPhone 5 sales.”
Apple fell 3.6 percent on Monday after multiple news reports that it had cut iPhone 5 component orders in half in anticipation of a slower March-ending quarter.
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Cautious About Margins
“We are more cautious than sell-side forecasts for revenue and gross margin, mostly driven by our expectation that iPhone gross margins and average selling prices are unsustainably high,” Jeffrey wrote, while reiterating a Neutral rating. “While the timing and extent of any decline is still uncertain, we retain our conviction that margins will fall.”
The analyst cut his iPhone unit sales estimates by 2 million to 48 million for the December quarter, by 4 million to 39 million for the March quarter, and by 9 million to 157 million for the full year. He increased his forecasts for iPad unit sales by 1.8 million to 21 million for the first fiscal quarter, by 2.4 million to 20.6 million for the second, and by 9.7 million to 89.6 million for the full year. There were more cuts…
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