Shares of Apple Inc
Weak demand and a potential delay in the launch of iPhone 15A could result in lower iPhone sales than was earlier anticipated, according to BofA Securities.
The Apple Analyst: Wamsi Mohan reiterated a Neutral rating, while raising the price objective from $190 to $210.
The Apple Thesis: The company, which is gearing up for its fiscal third-quarter earnings call on Thursday, Mohan said in the note.
"We expect weaker iPhone demand (checks indicate weak production trends) to be somewhat offset by resilience in Services (App Store growth better, subscriptions strong) and FX trends (1% headwind) which is better than guidance of 4% headwind," the analyst wrote.
"We expect F4Q guide to potentially be impacted by launch timing of the iPhone 15 that based on our checks could be delayed by a few weeks," he added.
Earnings: For fiscal third-quarter earnings, BofA models Apple revenues of $80.7 billion - a 3% year-over-year decline - compared to Street estimates of $81.8 billion.
"This year we see headwinds from both lower consumer spend as well as slowing enterprise spending," the firm stated. "Headwinds to services revenue given the weaker macro environment and FX, and weaker digital advertising and gaming spend."
AAPL Price Action: Shares of Apple had declined by 0.36% to $193.03 41.10 at the time of publishing Wednesday.
