This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

iPhone Worries Continue to Hit Apple (Update 1)

Updated from 8:11 a.m. EST to provide new product comments in the eighth paragraph.

NEW YORK (TheStreet) -- It's another day, and another analyst has cut estimates on Apple (AAPL), as the iPhone gets set for a refresh later this year.

Oppenheimer analyst Ittai Kidron lowered his earnings estimate for the June quarter, and cut his price target to $460 from $480, as Apple gets set to refresh the iPhone. He expects Apple will sell 26 million iPhones in the quarter, down from 27 million previously.

While an iPhone refresh is well known in the marketplace, Kidron now expects this to happen in September, something he didn't before. "We're adjusting our June estimates accordingly (lower ASP on mix shift/slight unit cut) to slightly below consensus," Kidron wrote in the note. "We're also significantly pushing back our iPhone estimates for the September quarter as our previous expectation for the timing of a new iPhone release looks overly optimistic." Kidron rates shares "outperform."

He now expects Apple to earn $7.23 a share on $35 billion in sales for the June quarter, down from $7.43 and $36 billion in revenue.

Analysts polled by Thomson Reuters expect Apple to earn $7.41 a share on $35.19 billion in revenue during the June quarter.

This isn't to say that demand for the iPhone is falling off a cliff, especially as Apple gets set to announce the iPhone 5S later this year. Kidron notes that demand for the iPhone 4 and iPhone 4S is "steady," but sees "mixed demand for the iPhone 5."

There's been increasing talk among analysts, journalists and industry watchers that Apple is getting set to launch a low-end iPhone, as consumers want to own the iPhone, but have not seen the differences from the iPhone 4S to the iPhone 5. CEO Tim Cook hinted that Apple could one day announce a lower-end iPhone, which could not only boost Apple's market share, but also its revenue. "We haven't so far," Cook said at a recent technology conference, when asked about extending the iPhone product range. "That doesn't shut out the future. It takes a lot of really hard work to do a phone when you manage the hardware and software and services in it. We've put our focus on doing that right. We haven't been focused on working multiple lines."

Kirdon expects shares to be range bound until new hardware is released, whether it's a new iPhone or something else. "Our projections don't anticipate a larger-screen iPhone in Sept. or new segments (iWatch/iTV), all of which could spur investor interest," Kirdon penned in the note. "We see a larger iPhone as a CY14 reality, but only mildly incremental to estimates/sentiment. We're lukewarm on an iWatch, but view iTV as having more gamechanging/innovation-reaffirming potential."

Apple shares were lower in Tuesday trading, off 0.38% to $401.00.

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs