Apple (AAPL) iPhone and Mac demand remains soft in the US and China, according to analysts at UBS on Tuesday.
The analysts, who maintained a Neutral rating and $190 price target on the stock, told investors in a note that they are trimming their fourth-quarter estimates for the company while they see consensus FY24 expectations likely moving lower given the China risk.
"Ahead of Apple earnings, we trim Sept qtr iPhone and Mac revenue forecasts 1.0% and 4.7% respectively to reflect soft demand across the two largest regions, the US and China," the analysts wrote.
"While demand trends have been soft throughout the quarter, checks indicate demand did not materially pick-up in Sept. In fact, iPhone sell-through in the month of Sept came in at just 18.7M units, down 11.6% YoY," they added. "In addition, we est Macs declined ~24% YoY in the quarter, the 4th consecutive YoY decline as excess inventory from Sept-22 was worked off."
UBS's new September revenue estimate of $88.1 billion (prior $89 billion) is below the consensus of $89.5 billion. In addition, the analysts explained that lower revenue pressures the firm's September quarter EPS estimate for Apple to $1.36 (prior $1.39), which is 4 cents below the consensus of $1.40.
Apple shares (NASDAQ:AAPL) are down 0.6% at the time of writing on Tuesday, giving up most of Monday's gains.