Apple (NASDAQ:AAPL) will seemingly promote 7M fewer iPhones in Q1 of fiscal 2023 resulting from China manufacturing points, Credit score Suisse stated Friday based mostly on channel checks.
However the gross sales backlog will shift to Q2, analyst Shannon Cross stated in a word, retaining her Outperform score on the inventory with a worth goal of $184.
AAPL edged up 0.3% in premarket buying and selling.
Credit score Suisse minimize the forecast for Q1 iPhone gross sales by 7M to 69M items. It stored income unchanged at $121.66B and minimize EPS by 8% to $1.92 from $2.09.
Based mostly “on our channel checks and enter from our Asia workforce, we imagine Apple’s manufacturing points on the Hon Hai manufacturing unit in Zhengzhou will cut back F1Q23 income and EPS, with ensuing backlog benefitting F2Q23 outcomes,” Cross stated. “With low retail availability persisting, we expect the weaker items are a provide moderately than demand subject, though iPhone 14 and iPhone 14 Plus demand seems underwhelming.”
“This combine shift to the upper finish is in step with our ideas from the launch and displays Apples technique this cycle to maneuver clients up the line-up.”
Apple associate Foxconn simply ended its closed-loop iPhone system at Zhengzhou.