Due to supply chain issues in China, investment firm Piper Sandler lowered its expectations for Apple stock ( NASDAQ:AAPL ) on Thursday. Analyst Harsh Kumar, who rates Apple (AAPL) as overweight and has a price target of $195, now expects revenue for the December quarter to be $119 billion, down from a previous prediction of $127.3 billion, because the loss of 9 million iPhones may have an effect on sales.
A decrease from his prior forecast of about 83 million iPhone units sold in the quarter, Kumar now projects sales of 74 million units. The analyst continued, “Apple (AAPL) will do everything it can to catch up on production in December, particularly in the first two weeks of the month.”
Kumar wrote in a note to clients that, even though Apple has tried to move production out of China, “India still makes less than 5% of all iPhone 14s and is unlikely to help much at this point.” Even though COVID-19 restrictions have been lifted for the whole city, information released on Thursday says that Foxconn’s factory in Zhengzhou, China, will still use a closed-loop system. In premarket trade, Apple’s (AAPL) shares marginally increased to $148.20.
The supply disruptions coming from China and “softer demand” for the entry-level models of the iPhone 14 lineup were the reasons given by investment firm UBS for the Thursday reduction in its iPhone build forecast. Despite Zhengzhou opening up, Foxconn is still in a closed loop.
Developments behind Apple stock forecast
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