Apple's Taiwanese Suppliers Are Outperforming Seasonal Sales - Does It Hint at Resilient Demand? This Analyst Answers
Portfolio Pulse from Anusuya Lahiri
Citi analyst Atif Malik observed that Apple Inc's Taiwanese suppliers, including Hon Hai, Pegatron, and Wistron, reported a 10% month-on-month sales growth for October, outperforming the 3-year average seasonality. Despite concerns about iPhone sell-through in China with the Huawei Mate 60 launch, U.S. sales remain strong. Malik has not observed supply chain build cuts and maintains his estimate of 81 million iPhone 15 units for CY23. Apple's stock traded down by 0.76% at $184.98.
November 13, 2023 | 6:51 pm
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POSITIVE IMPACT
Apple's Taiwanese suppliers show stronger than expected sales growth, indicating potential resilience in demand for Apple products, despite concerns in China.
The better-than-expected performance of Apple's suppliers could suggest that demand for Apple's products remains strong, which is a positive sign for the company's revenue and could lead to a positive short-term impact on the stock price. However, concerns about the China market and the recent price action temper the potential impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90