iPhone demand weakness just ‘noise,’ outlook remains strong, analyst says

Investment bank Morgan Stanley calls recent reports of weaker iPhone demand “supply chain noise,” and sees the AAPL pullback as a buying opportunity for investors. In a note to investors seen by AppleInsider , analyst Katy Huberty says she agrees with reports of iPhone 12 mini weakness, but adds that the overall demand environment remains positive for the iPhone 12 and iPhone 12 Pro lineup. For one, she cites reports that Apple is cutting iPhone production to 75 million units in the first half of 2021. Although Huberty admits this has contributed to recent AAPL underperformance, she says the news is “noise rather than anything that impacts the fundamental outlook.” A recent Morgan Stanley check indicated that there’s between three million and five million units of total iPhone build upside risk for the first half of 2021. That’s because the bank’s research indicates that build orders for specific iPhone 12 and iPhone 11 models are being revised up, not down. She says the recent underperformance presents an opportunity to buy Apple shares at a 2.5 times discount. That represents a 10 times discount on her 12-month price-to-earnings multiple of 35x. iPhone 12 family demand There are a number of reasons… Read full this story

iPhone demand weakness just 'noise,' outlook remains strong, analyst says have 320 words, post on appleinsider.com at March 12, 2021. This is cached page on Trend . If you want remove this page, please contact us.