Apple Stock Might Not Be Ripe For Plucking As Analyst Predicts Revenue Drop To Continue Into Holiday Quarter
Portfolio Pulse from Shanthi Rexaline
KeyBanc Capital Markets analyst Brandon Nispel maintains a Sector Weight rating for Apple Inc. (NASDAQ:AAPL), predicting the company's declining revenue trend to continue into the holiday quarter of fiscal year 2024. Nispel cites lower upgrade rates and postpaid phone gross additions, competitive pressure in China, a stronger dollar, and the need for increased capital expenditure in AI as reasons for his outlook. He expects a 5% YoY decline in hardware revenue in the holiday quarter.
October 30, 2023 | 9:44 am
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Apple's revenue is expected to continue declining into the holiday quarter of fiscal year 2024, according to KeyBanc analyst Brandon Nispel. This is due to lower upgrade rates, competitive pressure in China, a stronger dollar, and the need for increased AI capex.
The analyst's prediction of a continued revenue drop for Apple is based on several factors. Lower upgrade rates and postpaid phone gross additions suggest a decrease in demand for Apple's products. Competitive pressure in China, particularly from Huawei, could limit Apple's market share in the region. A stronger dollar could also negatively impact Apple's earnings. Finally, the need for increased capital expenditure in AI could put further pressure on Apple's finances.
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