Will Apple’s iPhone numbers continue to live up to expectations?

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with apple (NASDAQ: AAPL) set to host its annual developer conference in early June, the consumer electronics giant will take a few days to focus on software and services designed to appeal to its developer community. It’s automotive jargon, it will be a lot of things “under the hood”.

But while Apple (AAPL) will use its WWDC to attract software and app developers, the iPhone, the primary device that continues to drive Apple’s (AAPL) business, remains front and center in many investors’ minds. and analysts. that cover the company. And anything that could tamper with the iPhone’s Apple Cart is likely to cause some concerns about where Apple’s overall business (AAPL) is headed.

Loop Capital managing director John Donovan said Apple (AAPL) may use Memorial Day weekend to update the number of iPhones it will have made during the second quarter of the year. Donovan said that for Apple’s current quarter (AAPL), he forecasts the company will make 42 million iPhones, compared to consensus expectations of 44 million devices. Donovan said such a discrepancy “is not surprising, given fears of not getting a lot of key parts and pieces in common across multiple product families.

Donovan said just as important are iPhone shipments from Apple (AAPL), which he estimates will be in the range of 41 million to 43 million phones, or about 6 million less than consensus estimates. Donovan said Apple (AAPL) needs to ensure key iPhone parts, such as Taiwanese processors commonly used in various iPhone models, remain at the levels necessary to support the company’s supply chain and reduce turnaround times. waiting on iPhone orders by consumers.

Going forward, Donovan estimates that Apple (AAPL) will build 57 million iPhones and ship 50-51 million iPhones, or up to 5% less than consensus forecasts, during the third quarter of this year.

Donovan said the “usual suspects” would likely have an impact on Apple’s (AAPL) iPhone numbers: China’s Covid-19 lockdowns, supply chain issues, and surging inflation that has shown few signs of slowing.

“Getting an understanding of the truth [iPhone] demand is elusive,” Donovan said. “But what is clear is that demand is not materializing as sustainably as predicted.”

Donovan said investors should also “watch out” for what he called “quarter-end machinations.” [iPhone] numbers” by Apple (AAPL). For its part, Apple (AAPL) does not provide unit sales figures for the iPhone.

Meanwhile, TF International Securities analyst Ming-Chi Kuo weighed in on the iPhone matter, saying industry checks suggest Apple (AAPL) is still on track with its shipping plans for the iPhone 14, which if the story holds, Apple’s (AAPL) debut in September or October in time for the year-end Christmas and holiday shopping season.

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