Canaccord Genuity analyst Mike Walkley has dropped its stock price target for Apple Inc.
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) from $560 to $530, while reiterating a buy rating.
He did so after reducing his estimates for global smartphone sales this year to 959 million units, from the previous estimate of 979 million.
“Our June monthly surveys indicate softer global flagship smartphone sales in developed markets versus prior expectations, particularly in Europe, and an increasing mix of discounted $300-$400 legacy models from Western OEMs (original equipment manufacturer),’’ he wrote in a report.
“For example, our surveys indicated more affordable sub $400 Samsung Galaxy S 111s and iPhone 4s continued to sell better than our expectations, while the iPhone 5 and Galaxy S4 sold below our expectations,’’ he wrote.
“Further, our global market analysis indicates very strong low and mid-tier Android smartphone sales from Chinese OEMs, as consumers continue to upgrade from 2G feature phones."
Walkley cut his stock price target for Apple after reducing his fiscal 2014 estimate to 173 million iPhone units from a prior 181 million units, up from 140 million units this year.
“Our global handset surveys indicated the iPhone has lost sell-through market share post the launch of the Samsung Galaxy,’’ Walkley wrote.
He also cut his 2013 EPS estimate for Apple to $39.29 per share from $40.12. His 2014 earnings forcecast has been reduced to $44.04 from $46.80.
Still, he said Samsung and Apple maintained top share of the U.S. smartphone market.
Apple shares were virtually unchanged on Wednesday, falling 0.04% to $422.17, leaving a market cap of $396.3 million, based on 938.6 million shares outstanding. The 52-week range is $705.07 and $385.10.