Apple downgraded over slowing iPhone X demand

Wall Street researchers KeyBanc Capital Markets and Bernstein have lowered their ratings for Apple shares due to slowing iPhone sales. This week, the firm reported weaker than expected iPhone sales for December.

"Soft iPhone sell-through suggests a saturated market and the lack of gross margin upside reduces our view of potential profit growth," KeyBanc Capital Markets analyst Andy Hargreaves wrote in a note to clients, according to CNBC.

"This reduces our view of potential upside in the stock and prompts the downgrade," he said, adding that the stock's "fair value" is $178 per share.

Bernstein, which is Wall Street's premier sell-side research and brokerage firm, has also reduced its rating for Apple shares to market perform from outperform.

"Relative to expectations, the cycle is weak, and total iPhones sold are likely to be...