Apple Inc. (APPL) shares were indicated lower in pre-market trading after a rare downgrade for the world's biggest tech company by San Francisco-based Pacific Crest Securities, which advises clients to buy shares in Google owner Alphabet Inc. (GOOGL - Get Report) instead.

Pacific Securities analyst Andy Hargreaves said that while Apple "anticipates strong performance in the iPhone 8 cycle" it has given "relatively little weight to risks through the cycle or the potential for iPhone sales to decline" in its 2019 fiscal year. Pacific Crest also noted that "Recent supply checks suggest iPhone 8 (OLED) may be delayed until October with limited initial supply that ramps through" to the first quarter of the company's 2019 fiscal year, which begins on Oct. 1.

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This article was written by a staff member of TheStreet.