Apple stock was hurt in part on Tuesday by a downgrade by HSBC, after it cited an overwhelming dependence on a single product.
"What has made the success of Apple, a concentrated portfolio of highly desirable (and pricey) products, is now facing the reality of market saturation," said HSBC.
The Cupertino, California-based company's shares were down slightly in premarket after falling 4.4% on Tuesday — underperforming a particularly brutal 3.8% drop in the Nasdaq -- and is also down in premarket New York trading.
The rest of the FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) also took a hit, but they only saw a miner rally.
Several of Apple's supplier also suffered. Business Insider said, "Pegatron, in Taiwan, fell 1.7%. Chinese acoustics technology supplier AAC Technologies lost 3.7%. Taiwan's Flexium Interconnect was down 3.9%. Taiwan's Largan Precision declined 3.7%."
With the news that iPhone sales have peaked, fears are spreading about Apple's performance. This market saturation fears were prompted by the Apple's decision to not report unit sales for iPhone.
We see Apple's stock stabilizing, whether it may be at this price point, a higher point, or a lower price. Thanks you for reading! Comment your thoughts below.