Apple (NASDAQ:AAPL)
Even though research firm Baird decreased its projections for the crucial December quarter, Apple stock increased on Wednesday, despite this news. Baird cited the company’s recent difficulties in China as the reason for this change.
It is now expected that Apple (NASDAQ:AAPL) will ship 8 million fewer iPhone units during the quarter, resulting in a 5.6% haircut to total revenue and placing the company at the low end of analysts’ estimates. Analyst William Power has an outperformed rating on Apple stock and a price target of $170.
Power now forecasts that Apple (AAPL) will bring in sales of $117.4 billion for the quarter with profits per share of $1.86. This compares to an earlier forecast of $2 per share for earnings per share. The majority opinion among market watchers is that the corporation will post sales of $124.1 billion for the reporting quarter.
The analyst also said that the larger COVID-19 lockdowns might harm near-term demand in China. Still, he added that it is likely a timing problem rather than one of the demand disappearing altogether. As China continues to work through its COVID-19 lockdowns, Power said that of the 8 million iPhone shipments, around 4 million are expected to be recouped in the next two quarters.
In a message to customers, Power said, “Though various uncertainties exist, we are cautiously decreasing forecasts for [first quarter] and [fiscal 2023] driven by assembly issues in China.” Growing COVID lockdowns are also a concern to China’s demand.
Apple stock increased by about 0.8% to $142.24 in response to remarks made by Federal Reserve Chairman Jay Powell that caused a jump in the markets as a whole.
Because Apple stock is dealing with supply chain problems coming out of China, a significant analyst said Tuesday that the company’s iPhone 14 Pro sales might be up to 20 million units fewer than projected.
Featured Image – Pexels © Armand Valendez
Author Shariq Khan 
