Piper Sandler says Apple (AAPL) likely lost 9M iPhone 14 units, cuts revenue estimates

December 1, 2022 9:30 AM EST
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Piper Sandler analyst Harsh Kumar lowered estimates on Apple (NASDAQ: AAPL) to reflect supply concerns amid protests at Foxconn’s key iPhone factory in the Chinese city of Zhengzhou.

Kumar lowered the revenue forecast for the December quarter to $119 billion, down from $127.3B on the expectations that Foxconn shipped about 9 million fewer iPhone 14 units produced last month.

Although the Covid restrictions have been relaxed in recent days, Kumar reminds Apple investors that more than 50% of iPhone production comes out of the Zhengzhou facility.

“While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5% of total iPhone 14 production and is likely to help only to a limited degree at this time,” Kumar wrote in a client note.

Still, the analyst reiterated an Overweight rating on Apple stock as the brand is still “formidable.”

Apple stock price is trading modestly higher Thursday.

By Senad Karaahmetovic

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Senad Karaahmetovic