NEW YORK (TheStreet) -- BGC Partners analyst Colin Gillis explained why his firm downgraded Apple (AAPL) - Get Report stock to a "sell" from a "hold" rating with a $85 price target to CNBC's Scott Wapner on "Fast Money: Halftime Report" Monday.
"We are not enthusiastic about the next iPhone upgrade cycle," Gillis said. The iPhone 7 is expected to launch on Sept. 16.
The iPhone 6S upgrade cycle was "slower than the 6" and Gillis predicted a "continued slowdown when the next iPhone hits."
The iPhone 7 will not give Apple as much revenue growth as investors predict, especially in the September and December quarters, the early stages of the new phone's release, Gillis continued.
"You're looking at a smartphone market that's fully matured, that's growing less than 1% and you're looking at a management team that has not diversified revenues away," he stated.
In five years the "only" product the tech giant has introduced is the Apple Watch, which has not been a strong growth grower, Gillis noted.
Shares of Apple are declining by 1.32% to $97.36 this afternoon.
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Separately, TheStreet Ratings rated Apple as a "buy" with a score of B.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: AAPL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.