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Apple: Analysts at odds with stock over waning iPhone 14 demand

Some analysts have upgraded Apple stock while others have downgraded it amid concerns over demand for its new iPhone 14.

Video transcript

RACHELLE AKUFFO: Apple shares down more than 5 and 1/2%. They're nearing almost 6% there. Mixed signals from Wall Street analysts. You have Bank of America downgrading the stock today to neutral with a price target of $160, citing the potential for weaker consumer demand to end the year. But then you have Rosenblatt Securities has taken the opposite stance, placing a buy rating on shares of Apple. Now they're also out with a new note titled, "Our survey says consumers love it," referencing the new iPhone 14.

So, obviously, when you have this dichotomy, I thought it was interesting that we saw Apple falling more than usual today, given how much everyone says Apple is always the one to bet on. Seana, what's your take on why this is happening, you think?

SEANA SMITH: Well, I think people are paying a lot more attention to maybe the Bank of America call. It's also important to point out Apple's not the only large tech giant in the red today. We're seeing selling across industries, and specifically, a lot of those large cap names-- large cap tech names being hit pretty hard today.

When it comes to these calls, the Rosenblatt call really stuck out to me because of this survey. And I think the big fear here with Apple is that maybe demand for iPhone 14 isn't going to be as strong as we initially thought it was, especially on the heels of the report that we got from Bloomberg yesterday.

But taking a look at some of these numbers from their findings, 29% will or expect to buy an iPhone 14 over the next 12 months, 33% current iPhone owners, 18% Android owners. Rachelle, you might be in that group. But that implies a 75 million base of people in Apple's home country who want this device. 75 million people, Dave.

So certainly, it's a stock that's getting hit hard today. I think there's lots of questions about consumer demand, especially if we are headed for a larger slowdown here, economically speaking, over the next couple of months. But long-term, I don't think you can bet against Apple.

DAVE BRIGGS: I wish the viewers could see what's on my screen here. All the notes I have highlighted just came out of your mouth. We are literally--

SEANA SMITH: We're on the same wavelength.

DAVE BRIGGS: --in sync on that because I am equally bullish on it, based on their own research of 1,100 US adults. And look, if you're in Apple for the short-term, you're in it for the wrong play, right? I mean, this is a long-term ecosystem, Apple services. We're all addicted to the entire ecosystem of it. Yes, it could be a short-term pain, to use the words of Powell, because it could be a tough couple of six months, maybe nine months, maybe even a year.

But in the long run, it's hard-- it's impossible to bet against Apple. I tend to lean on the Wedbush category here of being bullish on the future of Apple, based on the services, based on the AirPods they rolled out. Look, just a little bit of pain. I'll take it right now, Rachelle.

RACHELLE AKUFFO: No, I agree. I mean, obviously, when you think of Apple, as you mentioned, this is a long play. Apple isn't going anywhere. There's too much invested in the ecosystem for sure, but yeah, surprising to see, obviously, amid the broader selloff, people losing a little bit of faith in Apple. I'm not really sure why. Apple is definitely the one not to bet against.