Apple slips as J.P. Morgan tweaks iPhone shipment forecast for holiday quarter
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Apple (NASDAQ:AAPL) shares slipped nearly 1% in premarket trading on Monday as investment firm J.P. Morgan lowered its shipment forecast for the iPhone for the upcoming December quarter, citing the recent disruption in China.
Analyst Samik Chatterjee lowered his iPhone 14 estimates by 5M and other iPhone estimates by 3M and now forecasts iPhone and total revenues to decline year-over-year during the period.
"In relation to impact to [fiscal year 2023] estimates overall, the reduction to estimates are more modest as we expect part of the shipment shortfall in the December quarter to be made up in the March quarter, which typically being a lower production quarter will give Apple ample opportunities to recover the shortfall, and on the demand side based on historical precedent we expect limited to modest impact to consumer demand from delays and extended delivery times," Chatterjee wrote.
The analyst added that investor sentiment on Apple (AAPL) is likely to remain "challenged" in the near term absent additional visibility into the December quarter shortfall, but the limited impact on demand to the iPhone 14 lineup may give long-term investors "several attractive buying opportunities into the shares through to the year-end."
Last week, Apple (AAPL) said that it will invest $450M to power the new Emergency SOS system available on the iPhone 14.