Apple Stock Falls On Report Of 'weak Demand' For IPhone 6s

By Jennifer BootonMarketWatch Pulse

Shares of Apple Inc. fell 2% in premarket trade after Credit Suisse said the company's supply-chain orders have weakened recently in Asia, which could weigh on Apple's shares for the "next few weeks/quarters." Apple has lowered its component orders by as much as 10%, according to Credit Suisse analyst Kulbinder Garcha. That points to "weak demand for the new iPhone 6s," said Garcha. He lowered his estimate on how many iPhones Apple will build in the next calendar year to 222 million from 242 million, and reduced his calendar-year 2016 earnings per share estimates by 6%. Credit Suisse maintained an outperform rating and $140 12-month stock price target, however, forecasting continued growth among Apple's iPhone installed base. It was also optimistic on the potential for a mini iPhone, with reports surfacing this week that Apple is considering launching a 4-inch phone in 2016. Shares of Apple are trading flat from three months ago, in-line with the performance of the Dow Jones Industrial Average.

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