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Apple’s woes in the US, EU and China Wall Street analysts say the company’s overall sales and earnings per share could fall for the first time in nearly a decade.
Ananda Barua, an analyst at Loop Capital, said: iPhone maker’s earnings forecast lowered In a note Monday, he lowered his price target for the company’s stock from $180 to $170, Barron’s reported. He reiterated his “hold” rating on the company’s stock.
Baruah said there is “some risk” that the company’s third-quarter results will not meet Wall Street expectations for iPhone sales, overall sales and profits. Baruah expects his March iPhone sales to be $44 billion, which is lower than his previous forecasts and those of Wall Street analysts. His overall Apple revenue forecast is $87.8 billion, lower than Wall Street’s $91 billion estimate. Meanwhile, Apple is at “significant risk” that its June quarter results will be lower than expected, he said.
“Simply put, iPhone shipments are way too low, not just because of intrinsic demand but because of competition,” Barua said. in his notes. He added that the company is seeing average iPhone selling prices flat “for the first time in years” and that part of the reason is that “for the first time in a while,” there is a reduced product assortment.
read more: Apple’s rough 2024 timeline (so far)
iPhone sales In China, it plummeted by 24% compared to the previous year. In the first six weeks of 2024, Apple will face competition from homegrown Huawei. Sales recover with launch of new smartphone series. Overall, smartphone sales in China were down 7% year-on-year during this period. Apple was also “caught in the middle with aggressive pricing from Oppo, Vivo, Xiaomi and others,” said Mengmeng Zhang, senior analyst at Counterpoint Research. statement.
“We now expect Apple’s overall revenue and EPS (earnings per share) to decline year over year for the first time since 2016 for calendar 2024,” Barua said. in his notes.
Baruah said Wall Street’s forecasts for iPhone sales and revenue could be 20% higher than actual results, while the company’s overall revenue and earnings per share forecasts are 10% higher than Apple’s announcement. He said it is possible. He also noted that iPhone shipments have returned to pre-pandemic levels.
However, Baruah said Apple stock could rise due to the following factors: AI announcement At the developer conference in June, Vision Pro headset sales. Neither Apple nor Loop Capital immediately responded to requests for comment.
Apple is currently facing an antitrust lawsuit from the US Department of Justice. Anti-competitive and creating a monopoly in the smartphone market.
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