According to a report from Newstreet Research, AppleSales of flagship iPhone are likely to fall sharply, and investors should leave before share prices plummet.

The tech giant reported second-quarter iPhone sales of nearly $48 billion, helping the company beat analysts' expectations for earnings and revenue. Several analysts say iPhone12 is part of Apple's new supercycle.

However, Newstreet analyst Pierre Ferragu downgraded the stock to sell from neutral and said in a note to clients on Friday that iPhone12's strong sales seemed unsustainable.

Newstreet is the second agency to give Apple a selling rating, according to TipRanks.com.

Apple has 18 buy ratings and five hold ratings, making it one of the most popular stocks on Wall Street, according to TipRanks. Wolfe Research is the only company that gives a sell rating. No big Wall Street investment bank rates Apple as a sell.

Most wealthy consumers' earning power has not been greatly affected by COVID-19 's epidemic, but their spending opportunities have shrunk, the report said. As a result, high-end consumer electronics have benefited. IPhone is the best example, and Apple's shipments in fiscal 2021 were close to record levels, which means the iphone12 is the second-best-selling iPhone ever.

However, New Street said that the pooling of events that contributed to iPhone12's success meant that demand had been expanded, posing a disappointing risk for the company's subsequent outlook for fiscal year 2022.

The report pointed out that, New Street expects iPhone sales to decline-shipments range from 1.8 billion to 200 million units, while the market is generally expected to be 234 million units, and downgraded the stock to sell.

Like several other large technology stocks, Apple underperformed the market this year. Shares in the consumer hardware giant have fallen more than 5 per cent since the end of December.

New Street lowered Apple's share price target to $90 a share, 28% below Thursday's closing price. (Chinese Investment Network)