KeyBanc reiterates its weight gain on Apple as carrier survey shows mixed demand for iPhone 14
Investment firm KeyBanc Capital Markets reiterated its over-rating Apple (Nasdaq:AAPL) on Thursday, noting that recent carrier survey data showed “mixed” demand trends on the iPhone 14 line, with “strong” demand on the Pro and Max models, but little interest. For basic iPhone 14 and iPhone 14 Plus models.
A group of analysts noted that the results of the entire sale of the iPhone 14 series were mixed, with “in line with slightly lower store expectations”. iPhone 14 Pro Max saw the strongest demand, followed by iPhone 14 Pro. The initial sale of the iPhone 14 Plus was described as “disappointing”, with “significant” amounts of stock.
“Our key first look data results indicate strong iPhone 14 demand, with October domestic iPhone sales up 23%. [month-over-month] and 2% [year-over-year]With in-store sales increasing by 24% [month-over-month] and 11% YoY, while online sales are up 22% MoM but are down 3% [year-over-year]Analysts wrote.
They added that the double-digit increases are “in line” with historical seasonal trends in October, but are below the historical five-year average, in part due to higher-level supply constraints, as well as “weaker-than-expected sales of 14/plus.”
Analysts also note that Apple (AAPL) tracks “below historical averages” for Mac and iPad, with company data showing devices up 48% quarter-on-quarter, below the three-year average of 68%.
“In other words, the consensus expects quarterly growth below AAPL’s historical average,” they added. “We see potential pressure on the ratings.”
apple (AAPLShares rose in pre-market trading to $135.80.
Analysts note that the Mac is likely to see a sharp drop in (AAPL) in the first quarter, with estimates down 34% year over year, while the iPad is expected to fall 15%, due to overall headwinds and supply chain constraints.
Analysts added that the full sale results, along with supply constraints, were largely reflected in (AAPL) outlook, but is seen as “fairly negative” for its suppliers, including Broadcom (AVGO) and Cirrus Logic (cross), Qualcomm (QCOM), Qorvo (QRVOand Skyworks SolutionsSWKS).
On Wednesday, it was reported that the Foxconn plant in Zhengzhou, China, produces a large part of Apple (AAPLiPhones, Still subject to COVID-19 restrictions even after China lifted lockdown in the city.
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