apple (NASDAQ:AAPL) is scheduled to report its first-quarter results for its fiscal year on Thursday, and the tech giant’s quarterly report gives investors additional insight into how its supply chain is performing and what the implications are. may provide insight into It’s on every important iPhone.
November, Apple (AAPL) warned China’s COVID-19-related disruptions may reduce iPhone 14 shipments. Since then, Apple’s (AAPL) Foxconn, a major iPhone maker, also known as Hon Hai Precision (OTCPK: HNHAF), have received Alleviated workers’ anxiety and dealt with the impact of China’s COVID-19 policies. result Revenue dropped significantly in November.A month later, Foxconn saw Earnings rebounded sharply in December as the company’s main iPhone factory in Shenzhen, China, returned to normal operations.
Furthermore, China effectively demolished COVID-19 policies that have hindered economic growth in the world’s most populous country. Relaxation of travel restrictions.
analyst consensus Predict apple (AAPL) reports quarterly earnings of $1.96 per share and earnings of $122.05 billion.
In addition to the state of the iPhone and its supply chain, Apple (AAPL) and its management team, led by CEO Tim Cook, could provide investors with insight into the health of consumers as the global economic outlook continues to weaken and recession fears surface. there is.
Wells Fargo in the recent past cut The forecast for 2023 cites a sharp year-to-date share price rally and signs of “increasing weakness in consumer demand.”
“Overall demand push vs. weakening consumer demand…and uncertainty about the pace of China’s post-COVID lockdown recovery remains an increasingly cautious stance into 2023. [estimate calendar 2023 iPhone shipments] 216.4M, or -7% [year-over-year]or about 10% below consensus,” analyst Aaron Lakers wrote in a note to investors.
Bank of America analyst Wamsi Mohan has set a neutral rating and a price target for Apple at $153 (AAPL), recently Said The outlook for the March quarter is very weak, perhaps 20% higher than expected.
“The tone of the call is very important for understanding the underlying demand trajectory. [December quarter] The supply of high-end Pro models of the iPhone was severely constrained,” Mohan wrote in a note to customers.
Mohan added that his iPhone tracker showed that device availability had normalized, adding: “This allows us to conclude that demand may be lower than expected. [the first-half of 2023].”
On the bright side, Apple (AAPL) will be a “net plus” if it sees a reacceleration of the service due to improved backgrounds in video games and more stable advertising, Mohan added.
Other positives include a reduction in the impact of foreign exchange, continued reopening of China, and increased vertical integration, as Apple does (AAPL) continues to bring more components in-house, Mohan explained.
Last month, Deutsche Bank lowered its 2023 forecast for Apple (AAPL) Ahead of the iPhone maker’s first-quarter earnings announcement.