CA - Apple: Better Growth In Second Half Of The Year (Downgrade)
2024-07-03 09:17:00 ET
Summary
- Apple's H1 FY2024 performance was muted with negative growth in iPhone, iPad, and Wearables segments.
- Supply chain disruptions in China and fewer product launches impacted Apple's performance in 2023.
- Legal challenges, including patent infringement and antimonopoly lawsuits, are expected to have minimal impact on Apple.
In our previous analysis of Apple Inc. ( AAPL ), we highlighted the company’s commitment to AI with several anticipated generative AI developments and the launch of the Vision Pro, which we projected to reach a $5.7 bln revenue opportunity for the company by 2027. Furthermore, we believed the company could leverage its advantages with its massive installed base, robust ecosystem and loyal customer base.
In this analysis, we examined the company again following as its H1 FY2024 performance had been muted with a flattish growth rate of -0.8% YoY, falling short of our previous full year forecasts for the company at 8.6%. To identify the reason, we examined the company’s H1 performance by segment in comparison with our previous full year forecasts....
Apple: Better Growth In Second Half Of The Year (Downgrade)