Don’t pay attention to Apple-Analytics
2022.12.09 13:00
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Don’t pay attention to Apple-Analytics
Budrigannews.com – Morgan Stanley’s analysts are still bullish on Apple (NASDAQ:) despite the immediate difficulties, they stated in Friday’s research notes.
In a note to investors, KeyBanc analysts maintained their Overweight rating and $177 price target for Apple shares.
They explained that because user growth is greater than unit growth, the company advises looking beyond supply challenges in the immediate future.
“Indexed Spend decreased by -14% month-over-month in November, compared to a rise of +12% over three years, according to KFLD [Key First Look Data]. avg., building on the weakness of Oct. The supply issue in China is probably affecting outcomes; As a result, we remove iPhone unit ests. 7.3M, propelling our estimates.
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lower, with bearish assumptions predicting a production loss of 6 million to 10 million iPhones. Positively, supply chain diversification should, over time, lower LT risk and cause us to overlook the present; They wrote, “Some demand may shift to later quarters.”
Morgan Stanley analysts stated that Apple’s core drivers – IB and spend per user growth – remain intact, despite the fact that the disruption in iPhone supply in the near future is attracting the majority of investor attention.
“We believe that the strength and health of Apple’s ecosystem, where we remain bullish, are overlooked while the majority of investors are focused on the near-term supply disruption.” In the past few weeks, Apple has made a lot of headlines with things like iPhone production problems in China, expanding the geographic scope of its supply chain, rethinking its car strategy, new App Store pricing tiers, and new security and data privacy features.
This has led to a lot of investor questions. The disruption in iPhone production in Zhengzhou, China, and how it will affect the December quarter “have been the topic that has been capturing the majority of investor attention,” the analysts explained.
“We believe investors continue to under-appreciate the strength of Apple’s ecosystem,” they added. “While we acknowledge near-term supply disruptions remain a headwind to growth, and recently cut our Dec Q iPhone estimates (again) by 3 million units (to 75.5 million).
