KeyBanc reiterates overweight on Apple as carrier survey shows mixed iPhone 14 demand - Seeking Alpha

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Investment steadfast KeyBanc Capital Markets reiterated its overweight standing connected Apple (NASDAQ:AAPL) connected Thursday, noting that caller bearer survey information showed "mixed" request trends for the iPhone 14 line, with "strong" request for the Pro and Max models, but anemic interest for the basal iPhone 14 and iPhone 14 Plus models.

A radical of analysts noted that sell-through results for the iPhone 14 bid were mixed, with "in enactment to somewhat beneath store expectations." The iPhone 14 Pro Max has seen the strongest demand, followed by the iPhone 14 Pro. Initial sell-through for the iPhone 14 Plus was characterized arsenic "disappointing," with "ample" amounts of inventory successful stock.

"Results from our Key First Look Data bespeak robust request for iPhone 14, arsenic October home iPhone income accrued 23% [month-over-month] and 2% [year-over-year], with in-store income expanding 24% [month-over-month] and 11% y/y, portion online income accrued 22% m/m but decreased 3% [year-over-year]," the analysts wrote.

They added that treble digit increases are "consistent" with humanities seasonal trends successful October, but it's beneath the five-year humanities average, owed successful portion to proviso constraints astatine the high-end, arsenic good arsenic "weaker than expected sell-through of the 14/Plus."

The analysts besides noted that Apple (AAPL) is tracking "below humanities averages" for the Mac and iPad, with the firm's information showing hardware up 48% quarter-over-quarter, beneath the three-year mean of 68%.

"In different words, statement expects a little maturation 4th than AAPL's humanities average," they added. "We spot imaginable unit connected estimates."

Apple (AAPL) shares ticked higher successful premarket trading to $135.80.

The analysts noted that the Mac is apt to acquisition a crisp diminution successful Apple's (AAPL) first-quarter, with estimates down 34% year-over-year, portion the iPad is expected to diminution 15%, owed to macro headwinds and proviso concatenation constraints.

The analysts added that the sell-through results, on with proviso constraints person mostly been reflected successful Apple's (AAPL) outlooks, but are viewed arsenic "moderately negative" for its suppliers, including Broadcom (AVGO), Cirrus Logic (CRUS), Qualcomm (QCOM), Qorvo (QRVO) and Skyworks Solutions (SWKS).

On Wednesday, it was reported that Foxconn's mill successful Zhengzhou, China, which produces a important information of Apple's (AAPL) iPhones, is inactive taxable to COVID-19 restrictions adjacent arsenic China lifted the lockdown successful the city.