Meanwhile,Lehman Brotherscut its rating to neutral from outperform.
Standard & Poor’syesterday lowered the credit rating on Apple’s corporate and its senior debt to single-B from single-B-plus.
And the rating on its subordinated debt to triple-C-plus from single-B-minus.
The downgrade of the debt will make it harder for Apple to find interested investors to buy its notes.
The downgrade of the debt will make it harder for Apple to find interested investors to buy its notes.
Apple also plans to take a $300 million one-time charge for its acquisition ofNext Softwarein the current quarter.
The company’s marketing department is currently studying the issues to determine why consumers stayed away from Apple.
Yet it was the consumer systems that suffered the poorest sales, dragging Apple’s revenues down with them.
“Aggressive price-cutting is not the cure for Apple,” said John Rossi, an analyst withRobertson Stephens.
“Apple has to carve out a Mercedes Benz image,” Rossi said.
“Concern about the company’s viability was significant factor in consumer decisions.
Reporters Alex Lash and Jim Davis contributed to this story.
