Why the dip in Apple (NASDAQ:AAPL) stock post Iphone 6

The lack of an increase in the iPhone’s growth, combined with the absence of striking features on the Apple Watch has resulted in the downgrade of Apple (NASDAQ:AAPL) shares in the eyes of the investment bank Pacific Crest Securities.

This US based bank has demoted Apple (NASDAQ:AAPL) from a good position to a mediocre one, after analyzing the product launch of Tuesday. According to the bank, the company has not succeeded in providing enough potential for an upward growth trend.

The bank Pac Crest stated that customer loyalty is what we look up to now to save Apple shares and cash flow. Now it is up to the Apple Watch to be a success and attract a large market base. In the event of the Apple Watch not performing exceptionally well, the multiple weaknesses attached to the launch will cancel out the effect of any growth through earnings. This will result in the failure of the stock acquiring any appreciation in its value.

Tuesday, the 9^th of September in Cupertino, Apple (NASDAQ:AAPL) took the stage at the Flint Center to finally raise the curtain on its brand new iPhone 6 and an even larger iPhone 6 Plus. Another item in the spotlight was the first ever version of an Apple Watch. The company’s only wearable gadget launch has received varying reactions from analysts. The efficient Apple pay – an innovative payment method introduced by Apple (NASDAQ:AAPL), was also a part of Tuesday’s big event.

The news of iPhone and Apple Pay resulted in a rise in the shares within the Cupertino technology hub. However, the shares took a dip post the revelation of the Apple Watch. Resultantly, the shares listed on NASDAQ closed down to 0.38 percent. The stocks on the German lists were also harmed and reached a staggering 1.4 percent down.

The event also attracted evaluations from the market in terms of whether Apple (NASDAQ:AAPL) could manage to show innovation – that it is seen by quite a few, to be lacking.

Pac Crest however was impressed by the iPhone 6 range but didn’t see enough potential in the device to attract new customers beyond that. He believes that the company will not be able to acquire new users for its phones in the year 2016 and the future.

He expressed little hope in the Apple Watch – claiming that it was hardly a possibility that this new product would bring in bundles of profits to the company. He predicted that only a sale of 30 million of these smart-watches in 2015 would allow its share to $7.96 from $7.58, and $7.88 from $7.29, in the year 2016.

Pac Crest believes the Apple Watch might be an attractive addition but the fact that most users would probably still prefer a phone over a watch will greatly limit the market. Not to mention, the brief battery life and very limited features, that further discourages purchase. Apple Pay is also not expected to have enough muscle to significantly contribute to profits.

Apple (NASDAQ:AAPL) has received quite a lot of critique from analysts; some more than the others. The head of Saxo Bank, went to the extent of labeling the night as one where he thinks Apple (NASDAQ:AAPL) became quite ordinary. Peter Garnry believes so, based on the fact that the competition in the market is ever growing and fierce, while Apple (NASDAQ:AAPL) only came out with products with mediocre transformation powers at best.

He compared Apple’s (NASDAQ:AAPL) sad state with Isaac Newton’s view of things falling back down after having reached the sky.

He further went on to say that Apple (NASDAQ:AAPL) just deserves an average place in the stock market – not above or below its current state. He believes, it will stay stagnant at its position.