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.