Will Apple’s iPhone Numbers Continue to Meet Expectations?

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With Apple (NASDAQ: AAPL) set to host its annual developer conference in early June, the consumer electronics giant will take a few days to focus on software and services designed to appeal to its developer community. This automotive language, it will be a lot of “under the hood” stuff.

But, while Apple (AAPL) will use its WWDC to attract program and app developers, the iPhone—the primary device that continues to drive Apple (AAPL) business—remains front and center in the minds of many investors and analysts who cover the company. And anything that could disrupt the Apple iPhone shopping cart is likely to raise concerns about where Apple’s (AAPL) overall business is headed.

Loop Capital chief executive John Donovan says Apple (AAPL) can use Memorial Day weekend to update the number of iPhones it will have built in the second quarter of the year . Donovan said that for Apple’s (AAPL) current quarter, he sees the company building 42 million iPhones, compared to consensus expectations of 44 million devices. Donovan said such a discrepancy is “not surprising, given fears of not getting enough parts and the similarity of key parts across multiple product families.

Donovan said Apple was equally important to (AAPL) iPhone shipments, which he predicts will be between 41 million and 43 million phones, about 6 million less than consensus estimates. Donovan said Apple (AAPL) needs to ensure key iPhone components, such as Taiwan processors that are commonly used on several iPhone models, remain at the levels needed to support the iPhone supply chain. business and reduce consumer wait times for iPhone orders.

Going forward, Donovan estimates that Apple (AAPL) will build 57 million iPhones and ship between 50 and 51 million iPhones, up to 5% below consensus forecasts, in the third quarter of this year. year.

Donovan said the “usual suspects” would likely impact Apple’s (AAPL) iPhone numbers: China’s Covid-19-related lockdowns, supply chain issues and rising inflation that showed little sign of easing. slow-down.

“Master the real [iPhone] demand is elusive,” Donovan said. “But what is clear is that demand is not materializing as sustainably as expected.”

Donovan said investors should also “be wary” of what he called “quarter-end machinations to juice [iPhone] numbers” from Apple (AAPL). For its part, Apple (AAPL) does not provide unit sales figures for the iPhone.

Meanwhile, TF International Securities analyst Ming-Chi Kuo has weighed in on the iPhone case, saying industry checks suggest Apple (AAPL) is still on the right track. way with its shipping plans for the iPhone 14, which if the story holds, Apple (AAPL) debuts in September or October in time for the Christmas and holiday shopping season.

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