iPhone 16 Projections Questioned: Ming-Chi Kuo Says Expecting Apple Intelligence To Drive Sales 'May Be Too Optimistic'
Portfolio Pulse from Ananya Gairola
Top analyst Ming-Chi Kuo has cast doubt on the anticipated surge in Apple Inc.’s (NASDAQ:AAPL) upcoming iPhone 16 sales. Kuo noted that Apple has not ramped up its iPhone 16 orders, and suppliers TSMC and Largan have not reported an increase in unit growth. Kuo estimates iPhone 16 orders for the second half of 2024 to be around 87 million units, lower than the 91 million iPhone 15 units ordered in 2023. He also expressed skepticism about the new Apple Intelligence feature driving significant sales.
July 19, 2024 | 3:28 am
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NEUTRAL IMPACT
Largan, another key Apple supplier, has not reported an increase in orders for high-end models in 2024, according to Ming-Chi Kuo.
Largan's lack of increased orders for high-end models in 2024 suggests that the anticipated iPhone 16 sales surge may not occur. However, the direct impact on Largan's stock may be neutral as the company has other business segments.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
TSMC, a key Apple supplier, has not reported an increase in unit growth for the upcoming iPhone 16, according to Ming-Chi Kuo.
TSMC's lack of reported unit growth for the iPhone 16 suggests that the anticipated sales surge may not occur. However, the direct impact on TSMC's stock may be neutral as the company has a diversified client base.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Ming-Chi Kuo has cast doubt on the anticipated surge in Apple Inc.’s iPhone 16 sales, noting no ramp-up in orders and skepticism about the new Apple Intelligence feature driving significant sales.
Kuo's analysis suggests that the expected surge in iPhone 16 sales may not materialize, which could negatively impact investor sentiment and short-term stock price. The lack of increased orders from suppliers and skepticism about the new Apple Intelligence feature further support this outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100