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Why more analysts are downgrading Apple stock

April 13, 2015, 3:16 PM UTC
Apple Debuts New Watch
SAN FRANCISCO, CA - MARCH 9: Apple CEO Tim Cook announces the Apple Watch during an Apple special event at the Yerba Buena Center for the Arts on March 9, 2015 in San Francisco, California. Apple Inc. is expected to unveil more details on the much anticipated Apple Watch, the tech giant's entry into the rapidly growing wearable technology segment. (Photo by Stephen Lam/Getty Images)
Photograph by Stephen Lam — Getty Images

More analysts are downgrading Apple Stock, citing mixed reviews of its new Apple Watch wearable device and an expected quarterly downturn in iPhone sales.

Raymond James has downgraded Apple’s stock from a “market outperform” to a “market perform,” Business Insider reports. Last week, Societe Generale also noted potential problems with iPhone sales in coming quarters.

“Although the financial impact of the Apple Watch is almost immaterial near term, we are concerned that relatively muted reviews so far could place added fear in investors’ minds about the company’s ability to launch successful new product categories,” Raymond analyst Tavis McCourt wrote in a note to investors.

While Apple has yet to say how the Apple Watch preformed in its first weekend of pre-sales, one firm estimated the company sold almost 1 million units of the new device on the first day.

Apple in January reported $18 billion in profits on $74.6 billion in earnings, beating expectations in a record-setting quarter. The company’s stock is up more than 70% since this time a year ago.