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Barclays says Apple September monthly revenue was 4% below seasonal on China demand weakness

Published 09/10/2023, 14:30
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AAPL
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According to Barclays' Apple (AAPL) supplier tracker, the tech giant's September was seasonally below.

Analyst Tin Long revealed in a note Monday that Apple's September "monthly revenue was 4% below seasonal with Sep-Q builds also tracking 130bps below."

"Our supply chain tracker implies LSD miss for hardware revenues for Sep-Q with potentially misses across hardware categories with shortfalls in iPhone units, Macs, and iPads," explained Long, who has an Equal Weight rating and $167 price target on the stock.

"Based on our checks, we think 49M Sep-Q iPhone unit Consensus estimate is a bit too aggressive given China demand weakness and supply constraints on Sony CMOS and pro max periscope lenses. We currently model 48M for Sep-Q," added Long.

As a result of the demand weakness, Barclays also sees potential misses for Macs and iPads for the September quarter.

Despite the September weakness, Barclays stated that December quarter hardware looks in line vs. street estimates so far, although they acknowledge that risks remain.

By Sam Boughedda

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