Barclays analysts expect Apple (NASDAQ:) to report inline results for the March quarter, as “slower hardware demand will continue AAPL's multi-quarter trend.” He said he believes the tech giant's guidance for the June quarter will be lower than expected. ” They wrote.
Specifically, although analysts expect Apple's March quarter to be roughly in line with expectations, iPhone sales will decline slightly, offset by slightly higher iPad and Mac sales. I expect it to be.
We also expect services growth to remain stable at approximately 11%.
“We estimate iPhone sales in the third quarter to be 50.5 million units, compared to the consensus estimate of slightly more than 1 million units,” the analysts wrote.
“More importantly, we believe the sell-side consensus forecast is too high, with the June hardware guide likely to be lower than in-store expectations due to slowing demand. June Q iPhone Sales “We hear that 42 million units were produced and 39 million units were manufactured, but 44 million units were sold on the streets,” they added.
According to a recent study, iPhone 15 sales in China have continued to decline by double digits year over year in recent weeks, following a 20% drop in the first quarter.
Barclays notes that the shift in sales mix towards base models is likely to result in negative mix shifts and margin headwinds, resulting in a year-on-year decline in average selling prices (ASPs).
Management may continue to focus on Vision Pro, but Barclays doesn't see the product as material to Apple's financial performance, at least this year and next.
“We do not anticipate any significant design changes to IP16, and iPhone-differentiated GenAI applications may not be released until 2025 at the earliest. Initial build plans for IP16 are in the low 80Ms. , suggesting flat year-over-year unit growth,” the team said.
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Analysts reiterated their Underweight rating on AAPL.
