(Bloomberg) – Apple Inc. has extended its recent sale as analysts continue to see uncertainty over how the coronavirus outbreak will affect the iPhone manufacturer’s sales and supply chain.
Bank of America has written that Apple’s long-awaited iPhone 5G may be delayed a month later due to the epidemic. The company quoted a conversation with a company supply chain expert, Elliot Lan. Lan also expects the iPhone SE2 launch to be delayed “a few months” due to “both supply problems and lower demand for COVID-19”.
According to BofA analyst Wamsi Mohan, the launch schedule for future models “will depend on how production increases in April and May”. Earlier this week, iPhone maker Hon Hai Precision Industry Co. said it expects its Chinese factories to start operating normally by the end of March.
Apple shares fell 4% on Friday before reducing the decline to 2.4% at 11:09 a.m. in New York. The stock has fallen 13% since its record close on February 12, in line with the decline in the S&P 500 over this period.
Also on Friday, Deutsche Bank lowered its price target to $ 295 from $ 305, citing “considerable uncertainty” related to the epidemic.
Apple’s second quarter results are expected to be released late next month. Wall Street currently forecasts adjusted earnings of approximately $ 2.71 per share and revenues of $ 61.5 billion. Consensus on profits has fallen 9.6% in the past month, according to data compiled by Bloomberg, while sales have dropped 5.5% in the same period.
UBS said on Friday that “the risk of falling demand in the short term is increasing” for Apple, and that the impact is “likely to extend beyond China”. Analyst Timothy Arcuri added that although he expected demand to be simply delayed, “given the broader impact, we now believe that the impact on demand could continue” in June.
The company has a purchase price rating of $ 355, but is “cautious in the short term – especially on the demand side if the United States suddenly enters a[quarter] recession.”
On a more positive note, Nomura Instinet analyst Jeffrey Kvaal confirmed his recent comments that Apple’s supply chain is recovering faster than expected. The “risk of a major supply shock is diminishing,” he writes. Supply constraints “appear to be short term in nature”.
Relative to supply constraints, he added, “we hope and expect that the potential declines in demand will be less severe”.
(Updates the shares, adds comments from UBS and Nomura.)
To contact the reporter on this story: Ryan Vlastelica in New York at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Steven Fromm
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© 2020 Bloomberg L.P.
(Bloomberg) – Apple Inc. has extended its recent sale as analysts continue to see uncertainty over how the coronavirus outbreak will affect the iPhone manufacturer’s sales and supply chain.
Bank of America has written that Apple’s long-awaited iPhone 5G may be delayed a month later due to the epidemic. The company quoted a conversation with a company supply chain expert, Elliot Lan. Lan also expects the iPhone SE2 launch to be delayed “a few months” due to “both supply problems and lower demand for COVID-19”.
According to BofA analyst Wamsi Mohan, the launch schedule for future models “will depend on how production increases in April and May”. Earlier this week, iPhone maker Hon Hai Precision Industry Co. said it expects its Chinese factories to start operating normally by the end of March.
Apple shares fell 4% on Friday before reducing the decline to 2.4% at 11:09 a.m. in New York. The stock has fallen 13% since its record close on February 12, in line with the decline in the S&P 500 over this period.
Also on Friday, Deutsche Bank lowered its price target to $ 295 from $ 305, citing “considerable uncertainty” related to the epidemic.
Apple’s second quarter results are expected to be released late next month. Wall Street currently forecasts adjusted earnings of approximately $ 2.71 per share and revenues of $ 61.5 billion. Consensus on profits has fallen 9.6% in the past month, according to data compiled by Bloomberg, while sales have dropped 5.5% in the same period.
UBS said on Friday that “the risk of falling demand in the short term is increasing” for Apple, and that the impact is “likely to extend beyond China”. Analyst Timothy Arcuri added that although he expected demand to be simply delayed, “given the broader impact, we now believe that the impact on demand could continue” in June.
The company has a purchase price rating of $ 355, but is “cautious in the short term – especially on the demand side if the United States suddenly enters a[quarter] recession.”
On a more positive note, Nomura Instinet analyst Jeffrey Kvaal confirmed his recent comments that Apple’s supply chain is recovering faster than expected. The “risk of a major supply shock is diminishing,” he writes. Supply constraints “appear to be short term in nature”.
Relative to supply constraints, he added, “we hope and expect that the potential declines in demand will be less severe”.
(Updates the shares, adds comments from UBS and Nomura.)
To contact the reporter on this story: Ryan Vlastelica in New York at [email protected]
To contact the editors responsible for this story: Catherine Larkin at [email protected], Steven Fromm
bloomberg.com“data-reactid =” 41 “> For more articles like this, visit us on bloomberg.com
Subscribe now to stay one step ahead of the most trusted source of business information. “data-reactid =” 42 “> Subscribe now to stay ahead with the most trusted source of business information.
© 2020 Bloomberg L.P.