Remains
Apple (NASDAQ:AAPL) shares slipped on Friday even as investment firm KeyBanc Capital Markets said sell-through for the tech giant’s iconic iPhone “remains healthy,” despite it being late in the cycle and with the iPhone 14 release coming in short order.
Analyst Brandon Nispel reiterated his overweight rating on Apple (AAPL) and raised his price target to $185 from $177, noting that carrier checks showed customer demand for the iPhone 13 declined only “modestly” month-over-month.
“Despite being at the tail end of the iPhone 13 cycle, the majority of store managers surveyed highlighted iPhone demand remained resilient, aided by continued promotions and upgrades, while the impact of rising inflation continues to be minimal,” Nispel wrote in a note to clients.
Apple (AAPL) shares fell slightly more than 0.5% to $172.77 in early trading.
The analyst added that demand continues to remain skewed towards the iPhone 13 Pro and Pro Max models, while demand for the iPhone SE3 and mini are “muted,” despite continued promotions surrounding them.
Nispel also noted that iPhone inventory levels increased “slightly” to between 2 and 3 days, but that is still well below targeted levels.
Apple (AAPL) may announce its iPhone 14 line at an event on September 7, a tad bit earlier than the previous announcements for the iPhone 12 and iPhone 13.
TF International Securities analyst Ming-Chi Kuo said the reason the tech giant may do this is to “minimize” the risk a possible recession has on demand.
Earlier this week, Credit Suisse upgraded Apple (AAPL) to outperform, citing the company’s massive user base of almost 2 billion installed devices.
