Analyst Andy Hargreaves at Pacific Crest said he believes demand for Apple Inc.’s iPhone 6S is actually lower than it was for the iPhone 6, “possibly meaningfully so.” He said Apple’s statement that iPhone 6S sales are tracking at a record pace appears more a reflection of supply, and not demand. Hargreaves said evidence of lower demand comes from Google search data, device shipment times, third-party surveys, a lack of comments from carriers and a lack of quantitative comment on pre-orders in Apple’s statement. He wrote in a note to clients that Apple’s iPhone upgrade program isn’t likely to drive the change that some expect, as “the potential benefits are likely to be muted by likely financing costs, deflation in used iPhone pricing from increasing supply and cannibalization of people that already bought phones every year or already purchased AppleCare.” He reiterated his sector weight rating on the stock, saying it remains “attractive over the long term, but high iPhone expectations remain a near-term risk.” The stock slipped 0.5% in premarket trade, putting it on track to snap a five-session win streak. It has dropped 8.6% over the past three months, while the Dow Jones Industrial Average has lost 6.7%.
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