By Senad Karaahmetovic
Piper Sandler analysts lowered estimates on Apple (NASDAQ: AAPL ) to reflect supply concerns amid protests at Foxconn's key iPhone factory in the Chinese city of Zhengzhou.
The analysts lowered the revenue forecast for the December quarter to $119 billion, down from $127.3B on the expectations that Foxconn (TW: 2354 ) shipped about 9M fewer iPhone 14 units produced last month.
Although the COVID restrictions have been relaxed in recent days, they remind Apple investors that more than 50% of iPhone production comes out of the Zhengzhou facility.
"While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5% of total iPhone 14 production and is likely to help only to a limited degree at this time," the analysts wrote in a client note.
Still, they reiterated an Overweight rating on Apple stock as the brand is still "formidable."
Apple stock price is trading modestly higher Thursday.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.