Apple’s strategy raises some doubts

Apple’s stock to neutral from buy and strip away his $245-a-share price target. Cihra said that even though he expects the introduction of new iPhones such as the iPhone XS Max, with its $1,099 starting price, to boost average iPhone selling prices by 3 percent next year, he anticipates that overall iPhone revenue will decline by 2 percent from this year’s total.

Cihra said that by putting more emphasis on higher-priced iPhones, Apple could be setting itself up for missing out on business in two of its key overseas markets.

“We see growing risk of even softer iPhone-unit demand,” Cihra said. “With downside in China, India and other emerging markets, where Apple may need to start considering lower price points.”

UBS analyst Timothy Arcuri cut his price target on Apple’s stock to $225 a share from $240, and he took down his estimates for iPhone sales in Apple’s current quarter to 73.5 million phones from 75 million.

Apple shares have fallen 8 percent this week. Lumentum, a company that makes face-recognition technology used in the iPhone, cut its sales forecast because one of its largest customers told Lumentum that it wanted to “materially reduce shipments” for laser diodes used in 3-D-sensing applications. Although Lumentum didn’t disclose its customer’s name, many investors and analysts believe it to be Apple, as it accounts for 30 percent of Lumentum’s revenue. Apple did not respond to a request for comment about its relationship with Lumentum.

Apple also stoked speculation about its future iPhone sales when it said this month that it will no longer release quarterly figures for unit sales of iPhones, iPads and Mac computers.