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Apple Price Target: Why Are Apple Shares in the Red?

Apple Inc (AAPL)Apple Price Target: As of late, Apple Inc. (NASDAQ:AAPL) can’t catch a break. For a closer look at what has been going on, check out our recent article: Why Are Apple Inc. (AAPL) Shares Sinking?

Today, things got worse when Jefferies analyst Peter Misek cut his price target from $900 to $800. He believes that iPhone sales will slow in fiscal 2014, while a lower-priced version could hit markets during mid-summer which would result in additional struggles.

For Apple investors, things have not gone well over the past couple of weeks. In fact, last week alone saw a price decline of 10%. At the start of this week, shares are down slightly, and weren’t helped by Misek’s target cut. Despite the fact that the analyst is expecting financial results to beat expectations, he feels that the stock’s growth will be limited due to price declines and decelerated unit sales.

On the bright side, Misek added that:

“While we returned from Asia less bullish about Apple’s 2014 prospects, we believe the stock remains a Buy as expectations have been significantly reset and even a below-market multiple implies substantial upside to the current stock price.”

Over the past few months, investors have been wondering if Apple Inc. (NASDAQ:AAPL)’s strong growth can continue over the long-term. Concerns have come about regarding the company’s ability to maintain its stronghold in the mobile industry, especially with the iPhone and iPad losing market share to competitors – particularly those powered by the Google Android operating system.

Cheaper iPhone in the Works?

From a consumer point of view, a low-cost iPhone may seem like a dream come true. Misek believes the company could launch a less expensive version, somewhere in the $200 – $250 range, by June. Even though this technology will likely help Apple’s footprint in emerging markets (as we discussed here), it would unquestionably hurt gross margins, which have been a major concern of Cupertino bears as of late.

What are your predictions of Apple Inc. (NASDAQ:AAPL)’s stock price performance over the next few weeks? Will the slide continue or is a rebound imminent? Let us know your thoughts in the comments section below.

Check back here for more updates on Apple Price Target.

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