Crack appearing in Apple’s performance?
Apple has been enjoying unprecedented financial success for the last couple of years thanks to the iPod. For the most part, that is expected to continue, but at least one company is showing some reservations about the future of Apple. Banc of America Securities has lowered the target price for Apple stock from $85 to $82. They made this move based on news that Apple will be producing fewer iPods in this quarter and next quarter than they did in the final quarter of last year. The reason for the decreased production is unclear, causing the unease. It could be that heavy shipments at the end of December have eased short term demand. More disturbing for investors, though, would be if weaker than expected demand were behind the lower production.
It’s not as if Banc of America Securities has given up entirely on Apple. Apple is currently trading at about $72, so they still anticipate healthy growth for the stock.