Apple (AAPL) iPhone Datapoints Should Improve in 2Q16 - Mizuho

Mizuho analyst, Abhey Lamba, believes an inflection could be coming in Apple (NASDAQ: AAPL) iPhone supply chain data points in the second quarter of 2016. While not knowing what features will be included in the iPhone 7 the firm is reiterating a Buy rating and $120 PT on the expectation that news flow will begin to turn positive.

The Mizuho Japan team changed its forecast and now expects total iPhone component procurement to be ~224mm for 2016, which would be down 11% Y/Y. The team is expecting ~30% Y/Y decline in 1H16 followed by ~9% rise in 2H16. It seems that data points from the supply chain should start inflecting sometime in 2Q16 when component manufacturers are likely to start preparing for Y/Y growth in shipment volumes.

The analyst expects total unit volume to decline by ~6% Y/Y in 2016 as the company is likely to absorb some of the components it purchased last year. She is expecting ~51mm (-17% Y/Y) phone shipments in the March quarter followed by ~43mm (-10% Y/Y) in C2Q16 and 125mm (+1% Y/Y) in C2H16.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $94.02 yesterday.

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