BTIG's analyst Walter Piecyk announced that Apple's new rating is Neutral. Despite an expected "blow-out fiscal quarter" with $40 billion in revenue, Walter Piecyk believes there are reasons for concern when it comes to Apple's future.
"We believe that investors should take a breather during the expected strength of this quarter and the rapid rise in the stock and take a moment to consider the bumps on the road ahead Apple ", says the analyst.
He points out three reasons for Apple's downgrade. First on the list is "the changing dynamics in the post-paid wireless industry" which is affected by the customers' habit to upgrade their iPhone frequently.
This could push Apple to focus on the pre-paid market, where the high priced smartphones are rare. On the other hand, the $600 iPhone could lose its sustainability on a market where the customers are becoming more budget conscious.
Last week, six small carriers in the US announced they had introduced the iPhone, often charging $50 less than Apple's current standard.
Another reason that led to Apple's downgrade is "the elevated expectation that the company will deliver another revolutionary product into the market," believes Walter Piecyk.
Source: BTIG Research (free registration)