Apple (AAPL) shares are down 14% to around $110 — their lowest since May, 2007 — after Morgan Stanley and RBC both downgraded the stock this morning. Why? Mostly slowing demand and lousy economic conditions.
- RBC’s Mike Abramsky says his bank’s latest consumer survey shows Mac purchase intentions for laptops and desktops “suddenly moderating” from August — “the biggest declines in 2.5 years.” And more broadly, 40% of people plan on spending less money on electronics in the next 90 days — “the weakest outlook ever seen.” Abramsky trimmed his Mac outlook.
- Morgan Stanley’s Kathryn Huberty points out that the remaining source of growth in the PC market is in the sub-$1,000 market, where Apple currently sells no laptops.
Both note that the crappy economy means lower multiples for growth stocks like Apple — which means things could get worse before they get better.
One potential source of good news: Apple is expected to unveil new laptops in the next two weeks, which, if priced right — perhaps under $1,000 — could help with holiday sales.
Apple Flexes Even More Muscle At The iPhone App Store: No Reviews Till You Pay Up
RIM Downgraded On Risky Smartphone Land Grab, Crappy Economy
Bottom Line: Apple’s iPhone Still Beats Google’s G1 Android GPhone
Business Insider Emails & Alerts
Site highlights each day to your inbox.