Apple (AAPL) Analyst Says Production Reports Sound 'a Little Weird'

September 28, 2022 1:30 PM EDT
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Apple (NASDAQ: AAPL) shares fell Wednesday after reports that the technology giant was ditching its plans to boost iPhone production after demand falters.

However, according to TF International Securities Apple analyst Ming-Chi Kuo, the reports do not seem to be accurate.

"Rumored Apple ditching iPhone production increase sounds a little bit weird to me. As I surveyed before, Apple had production switch plans from iPhone 14/14 Plus to iPhone 14 Pro/14 Pro Max/price-cut 13, but I didn't hear of any overall iPhone production increase plan," Kuo said in a Twitter thread.

The analyst reiterated his survey result that shipment forecasts of iPhone 14 Pro and Pro Max will "increase by about 10%." This will benefit the iPhone ASP/product mix for 4Q22, the analyst believes, adding that "the demand for iPhone 14 and 14 Plus is obviously lackluster."

Apple shares are currently down 2.5% at around $148 per share after initially hitting a low of $144.84 earlier in the session.

"The order increase for iPhone 14 Pro, 14 Pro Max, and price-cut 13 could offset the potential order cut of iPhone 14 and 14 Plus. So I expect total 2022/4Q22 iPhone shipments to be roughly aligned with consensus despite many people worrying about the recession," he added. "I predict that Apple will likely offer a positive outlook for 4Q22 at the next earning call assuming iPhone shipments won't decline significantly starting December."

By Sam Boughedda

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