Apple vulnerable to Brexit according to Citigroup

Citigroup have cited concerns over Britain's decision to exit the European Union as the reason for lowering their revenue and earning estimates for Apple over the next two fiscal quarters.

Shares of the tech giant fell over 1% on Tuesday after the news, which also referenced the increased time between iPhones upgrades.

The broker was now expecting third-quarter revenue totalling $41.19bn, down from Citigroup's previous expectation of $42.2bn.

According to Marketwatch, Citi analyst Jim Suva said that the continued uncertainty surrounding Britain, which accounts for 2.3% of Apple's total revenue, led to the revisions.

Suva also cited the increased length for the iPhone´s upgrade cycle, which he estimated had increased to approximately 28 months from 24 months in 2013, and may well rise to between 30 and 36 months over the next two to three years.

The long-term prospects remain good for Apple however, despite the fact that they are due to post their first ever decline in sales of their trademark iPhone this year.

The release of the iPhone 8 and further expansion should aid this long-term growth, according to Suva.

Suva also cut his estimate for the company´s third-quarter non-GAAP earnings per share to $1.35 from $1.40, putting him at the lower end of Apple’s guidance range of $1.30 to $1.42, and below the Wall Street consensus estimate for $1.40.

Shares of Apple fell 1.3% to $94.62 in late-morning trade. They’ve declined by 14% over the last three months and 25.2% over the last 12.