Apple‘s move to ax device unit sales from future earnings reports is not “all that troubling” as the tech giant builds on its services segment and long-term goals, portfolio manager Timothy Lesko told CNBC on Tuesday.
“In order to do that, they really need to stop focusing so much on iPhone and focus on the rest of the businesses,” the partner at Granite Investment Advisors said on “Squawk Alley.”
Apple has drawn criticism for cutting iPhone, iPad and Mac unit sales from its reports, which will start in December. Following Thursday’s announcement, shares dropped about 9.5 percent, and two Wall Street analysts had downgraded the stock by Monday.
Lesko acknowledged that the unexpected announcement would “cause a concern on the Street” in the short run.
“That’s going to provide a few quarters of volatility,” Lesko said.
But he remains bullish on the stock in the long run as Apple begins to focus on the service business along with its consumer products.
“A pullback in the stock gives you an opportunity, if you didn’t already own it, to either add positions or build on them,” Lesko argued.
The stock is up slightly as of midday trading Tuesday.
“The stock is up 20 percent year to date,” he said, “and it’s trading at a discount to the market. So it’s not exactly priced to perfection at this point.”
