AAPL - Apple: China's Headwinds Will Likely Hit Very Hard
- Apple's critical iPhone and Mac assemblers reported underwhelming revenue in April. The headwinds from China's COVID lockdowns and weaker consumer demand have been significant.
- Therefore, we think the market is pricing in the top end of Apple's estimated revenue impact of $4B to $8B in FQ3.
- Apple has been facing its most significant supply chain snarls since March 2020. Therefore, investors need to brace for impact.
- Notwithstanding, we reiterate our Buy rating on AAPL stock. We think the potential bottoming process could form soon.
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Apple: China's Headwinds Will Likely Hit Very Hard