Apple Inc. (NASDAQ:AAPL), the world's largest technology company, had its price target lowered to $425 from $450 at Jefferies, which said higher-than-expected pricing and lower-than-expected production rates may slow new iPhone sales.
Jefferies, which retained its "hold" rating on the stock, said it lowered Apple's full-year 2014 estimates for per-share earnings to $37.95 from $38.78, compared with a consensus of $42.66.
Analyst Peter Misek said the new iPhone 5C is being priced similar to Apple's prior-generation handsets rather than setting a new level. He also said checks indicate supply constraints due to poor yield rates on the fingerprint sensor.
"Apple had two tough choices with the 5c pricing and the 5S sensor and opted for the higher price/lower market share option for both," Misek wrote in a note to clients emailed late yesterday.
With a two-year wireless carrier contract, the 5C will cost $99 for a 16-gigabyte model, and a 32GB device will cost $199. The 5S will come in three models, a 16GB version for $199, a 32GB model for $299 and a 64GB device that will cost $399.
Without a contract, the 5C will cost $549.
Both devices will go on sale on Sept. 20, and preorders for the iPhone 5C will be taken starting today.
A bunch of analysts have lowered their ratings on Apple in the wake of the Cupertino, California-based company's Sept. 10 media event where it unveiled its new iPhones.
Apple shares fell 0.9 percent to $468.78 at 9:36 a.m. in New York, stretching this year's losses to 11 percent.
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