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Citi trims Apple earnings estimates citing, in part, Brexit

A man walks by an Apple store in London.
Suzanne Plunkett | Reuters

Watch out Apple. Brexit may hit you.

Analysts at Citi cut their estimates for Apple's fiscal third and fourth-quarter earnings on Tuesday, citing Brexit-related macroeconomic uncertainty as one of their reasons.

"Macroeconomic conditions or shifting consumer demand could cause greater-than- expected deceleration or contraction in the handset and smartphone markets. This would negatively impact Apple's prospects for growth, and the shares may fail to achieve our target price as a result," Citi analysts said in a note to clients.

The United Kingdom's decision to leave the European Union shook equity markets across the globe, sending them sharply lower, before they reclaimed most of their gains.

Citi analyst also cited currency volatility and longer iPhone replacement cycles, which they said could extend to 30-to-36 months.

Apple shares traded lower Tuesday. The tech giant's stock has been under pressure this year, falling more than 9 percent.

AAPL in 2016Source:FactSet

Disclosure: "Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Apple, Inc.."