Barclays expects weak iPhone sales
Channel checks at Barclays suggest “slightly better” iPad and Mac revenues will help offset weak iPhone revenue, according to a recent note.
The firm said Wall Street estimates for Apple are too high, with analysts underestimating the ongoing weakness in China.
“Our latest checks also indicate iPhone 15 sell-through in China continues to show DD declines on a Y/Y basis over the last few weeks, after being down 20% in C1Q, with a higher mix of the base models, leading to negative mix shift and margin headwinds, with likely ASP declines on a Y/Y basis,” Barclays said.
Barclays also said the AI-capable iPhone 16 won’t deliver the growth that some investors expect.
“We don’t expect iPhone 16 to have significant design changes, and any differentiated GenAI applications with the iPhones will likely not launch until 2025 at the earliest. The initial build plan for iPhone 16 is expected to be in low 80Ms range, implying flattish unit growth Y/Y,” Barclays said.
Barclays rates Apple at “Underweight” with a $158 price target.
