Barclays expects weak iPhone gross sales
Channel checks at Barclays counsel “barely higher” iPad and Mac revenues will assist offset weak iPhone income, in accordance with a current observe.
The agency stated Wall Road estimates for Apple are too excessive, with analysts underestimating the continuing weak spot in China.
“Our newest checks additionally point out iPhone 15 sell-through in China continues to indicate DD declines on a Y/Y foundation over the previous couple of weeks, after being down 20% in C1Q, with a better mixture of the bottom fashions, resulting in damaging combine shift and margin headwinds, with probably ASP declines on a Y/Y foundation,” Barclays stated.
Barclays additionally stated the AI-capable iPhone 16 will not ship the expansion that some buyers anticipate.
“We do not anticipate iPhone 16 to have important design adjustments, and any differentiated GenAI purposes with the iPhones will probably not launch till 2025 on the earliest. The preliminary construct plan for iPhone 16 is anticipated to be in low 80Ms vary, implying flattish unit development Y/Y,” Barclays stated.
Barclays charges Apple at “Underweight” with a $158 worth goal.