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Why more analysts are downgrading Apple stock

Apple Debuts New WatchApple Debuts New Watch

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.