Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Apple: Bernstein's Analysts 'Cautious' on iPhone 14 Cycle, Valuation

Stock Markets Oct 07, 2022 08:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Apple (AAPL): Bernstein's Sacconaghi 'Cautious' on iPhone 14 Cycle, Valuation
 
AAPL
+1.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic 

Bernstein analysts, once again, reiterated their cautious stance on Apple (NASDAQ:AAPL) shares, which they rate Neutral with a $170 per share price target.

The analysts are worried that Apple may have been a COVID beneficiary, given that their operating profit is higher by over 60% than before the pandemic. Moreover, the analysts are concerned about weak iPhone 14 unit sales, despite the belief that the average selling price (ASPs) could be up about 5% YoY.

"Elongating replacement cycles following two strong years of sales and an increasingly pressured consumer, especially in China, could cause the unit sales to come in weaker than expected," the analysts wrote in a client note.

Bernstein forecasts that the Services growth will be in the mid-teens in the near-to-medium term.

"Apple has done an excellent job in driving ARPU growth in Services due to higher attach rates and new Services. Advertising and App Store account for 60% of Services revenues and 80% of Services operating profits today," the analysts added.

Finally, analysts are also concerned about Apple's valuation as shares trade "at the high end of its historical relative valuation range."

"Notably, Apple is the only stock among the 10 largest tech names to outperform this year, despite results being largely in line with expectations," they concluded.

Elsewhere, Morgan Stanley analysts noted that Phone 14 Pro Max & Pro lead times remain elevated, which marks "the 1st & 3rd strongest of all models launched in the last 6 yrs."

"Lead times in key int'l markets are even longer than in the US, despite Y/Y price increases, a positive surprise amid cont'd demand concerns," the analysts wrote in a research note.

Apple: Bernstein's Analysts 'Cautious' on iPhone 14 Cycle, Valuation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email