Apple estimates cut at Piper Sandler on China COVID issues
Feline Lim

Investment firm Piper Sandler cut its estimates on Apple (NASDAQ:AAPL) on Thursday, citing the China-based supply chain disruptions. 
Analyst Harsh Kumar, who has an overweight rating and $195 price target on Apple (AAPL), now expects revenue for the December quarter to be $119B, down from a previous estimate of $127.3B, as a 9M iPhone reduction in the quarter could hit sales.
Kumar now estimates roughly 74M iPhone units will be sold in the quarter, down from a previous view of roughly 83M. The analyst added that Apple (AAPL) will try everything in its power to catch up production in December, especially in the first two weeks of the month.
"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," Kumar wrote in a note to clients.
On Thursday, it was reported that the manufacturing plant for Foxconn in Zhengzhou, China, will continue to operate under a closed-loop system, despite the wider city removing COVID-19 restrictions.
Apple (AAPL) shares rose fractionally to $148.20 in premarket trading.
Investment firm UBS also lowered its iPhone build forecast for the fourth-quarter on Thursday, citing the supply disruptions out of China and "softer demand" for the low-end models of the iPhone 14 lineup.