Shares of Apple Inc. AAPL, -2.82% are down 2.5% in Thursday morning trading, after the arrest of Huawei’s chief financial officer prompted renewed concerns about China trade tensions. Rosenblatt analyst Jun Zhang cut his price target on Apple shares to $165 from $200, forecasting that the company will produce and ship roughly 39 million iPhone units in the March quarter. “Although we are at the low end of consensus iPhone estimates, we believe the Street will continue to trim down their estimates,” he wrote. “We believe the lack of iPhone shipment growth, along with tough comps for services revenues, will lead to estimates coming down.” His analysis also suggests weaker-than-expected sales for the iPad Pro, which he said is due to the company’s pricing strategy. Apple shares are off 23% over the past three months, while the Dow Jones Industrial Average DJIA, -1.83% has fallen 5.2%.

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