It seems like a distant memory when Apple's
share price hit an all-time high of $705.07 per share, at the time giving the Cupertino company a market capitalization of $656 billion. And today? Apple's stock is trading hands at under $432 per share, down about $6 from yesterday's closing price. It's market capitalization sits at $405 billion, down $251 billion from it's all-time high. The question is, how low can Apple's stock go?
Peter Misek, an analyst for investment firm Jefferies, issued a new price target for Apple, downgrading it from $500 per share to $420 per share. In a note to investors, Misek says his checks with Apple suppliers indicates the company is having issues with new casing colors, Apple Insider
reports. Due to those issues, Apple reportedly decided to delay the launch of the iPhone 5S
from June to sometime between July and September.
That's not the only problem Misek identified. In his note to investors, Misek said that some of the components for the rumored lower-end iPhone
are priced higher than expected, pushing the handset's price tag to between $350 and $450. That's hardly an attractive price point for a device that's supposed to wrestle market share away from the deluge of low-cost Android smartphones in the market place.
If all that weren't enough, Misek cut his iPhone estimate for the quarter by 2.5 million units. He also predicted Apple will report revenues of $41 billion, but followed it up by adding there's a 25 percent chance it will miss its guidance due to slow sales.