Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
The one-to-eight stock split would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion. It comes ahead of a reported Hong Kong...Asia Marketsread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
The findings by McKinsey and Company come amid a year-long tariff fight between the U.S. and China, which has spilled into areas such as technology and security.China Economyread more
Microsoft's considerable reach into the corporate world isn't something Slack CEO Stewart Butterfield is very concerned about.Technologyread more
In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Amazon workers in Minnesota and Germany are striking as Prime Day kicks off, in a stand against working conditions and wage practices. The action in Minnesota represents the...Retailread more
Treasury Secretary Steven Mnuchin is raising red flags ahead of Facebook's proposed cryptocurrency launch.Marketsread more
Beto O'Rourke's campaign for the 2020 election raised just $3.6 million in the second quarter of this year, putting him in the lower tier of candidates who have struggled to...2020 Electionsread more
Epstein is accused of sexually exploiting dozens of underage girls from 2002 through 2005 at his New York and Florida residences. He is a former friend of Presidents Donald...Politicsread more
The iPhone X is so popular that it just might wind up hurting Apple down the road.
It has been so successful that more and more iPhone users are upgrading early, eating into demand for future generations, according to New Street Research.
The vacuum in sales will be so great that investors should sell the stock, analyst Pierre Ferragu said in a note Monday.
"We expect a material disappointment in 2019," Ferragu said. "The iPhone X has been very successful and well received by consumers. It has been so successful, that we think it has brought forward demand."
IPhone users upgrading early "will drive an 'air pocket,' and the introduction of a lower-price premium OLED phone won't be enough to make up for the shortfall," the analyst added.
Ferragu covered tech stocks for Bernstein for 10 years before joining New Street as head of its global technology infrastructure team. He has covered companies in telecommunications, data networking, cybersecurity and semiconductors.
He now covers such stocks as Apple, Cisco, Tesla and Nokia.
New Street expects iPhone revenues in 2019 will be 10 percent below the Wall Street consensus. For his part, Ferragu believes that Apple's 2019 and 2020 earnings per share will be 9 percent and 6 percent below the average analysts' projections, respectively.
Shares of Apple fell 0.8 percent on Monday. New Research's price target of $165 represents roughly 25 percent downside from Friday's close at $217.58.
"History shows the stock suffers materially when iPhone revenues disappoint," Ferragu said. "This may sound insane, but fits our thesis: iPhone shipments are on a multiple-year decline trend, as refresh cycles elongate, and 2018 was a bump in the trend, as 2016 was."