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Apple Shares Down on Wells Fargo Downgrade

Apple Inc. (NASDAQ:AAPL) shares are slightly negative this morning on a downgrade from Wells Fargo. The tech giant was downgraded to market perform from outperform. Wells Fargo cited gross margin pressures with the release of the iPhone 6 because providers are reducing the level subsidies to entice customers to purchase cellphones. Consumers will be paying the true cost of cellphones. However, this is a surprising downgrade to me because most carriers will go above and beyond to offer iPhones at relatively moderate prices because customers will demand it. In addition, Apple has been around too long to let those subsidies disappear. I think the China Mobile deal will propel Apple to new highs.  The amount of iPhones Apple will sell as a result of the China Mobile deal will take care of any gross margin concerns.