Apple
stock was digging itself out a hole Monday after yet another Wall Street analyst pointed out weak demand for the iPhone 15.
In midday trading, shares of
Apple
(ticker: AAPL) were essentially flat, at $172.80, after starting the session down roughly 0.9%, at $171.40. The stock is up 32% for the year, but has closed in the red for the past six days. A seventh straight day of losses would be Apple’s longest losing streak since January 2022, according to Dow Jones Market Data.
The concern about iPhone 15 demand came this time from
J.P. Morgan
analyst Samik Chatterjee, who rates the stock as Overweight with a $230 price target.
In a research note Monday, Chatterjee wrote that lead times for the iPhone 15—lead time is the time from purchase to delivery—moderated for the fourth consecutive week, and are now below lead times for the iPhone 14, “in more signs of weaker demand.”
“Average lead times are now tracking to one day for the iPhone 15, 15 days for the 15 Pro, and 25 days for the 15 Pro Max, all of which are in line with or below the lead times for the respective models in the 14 Series during Week 6 a year ago,” Chatterjee said.
Shorter lead times signal slowing demand and longer lead times indicate higher demand.
Apple didn’t respond to a Barron’s request for comment on lead times.
Other analysts also have cited declining lead times of the iPhone 15, which was released in September.
On Friday, Evercore ISI analyst Amit Daryanani wrote that demand for different iPhone 15 models was mixed, with lead times for lower-end models waning last week.
UBS
analyst David Vogt also wrote in a research note last week that wait times for the iPhone 15 Pro model have contracted by an average of five days, compared with the iPhone 14 Pro last year.
Daryanani’s rating on the stock is Outperform and his price target is $210. Vogt has a Neutral rating and a $190 price target.
Traders want to see strong iPhone demand because smartphone sales are crucial for Apple. The iPhone provided $205.5 billion of the company’s $394.3 billion in revenue in 2022.
Apple reports fourth-quarter earnings after the close on Nov. 2, and investors will keyed in on how the iPhone 15 is selling.
Also on Monday, BofA Securities analyst Wamsi Mohan wrote that whether earnings meet expectations will depend on consumer spending trends during these times of sticky inflation and higher interest rates. His rates the stock Neutral and has a price target of $208.
“In constant currency, we model a slight deceleration in rev growth F4Q vs. F3Q given our expectation for a weaker consumer spending environment,” said Mohan. “However, in our opinion, rev and EPS ests, which declined earlier this year, have likely bottomed out, and we do not expect further major negative revisions barring a major recession.”
Investors will be interested in possible future product releases. Apple is planning to launch a new iPad in March, Bloomberg reported.
Apple also didn’t respond to a Barron’s request for comment on the report.
Write to Angela Palumbo at [email protected]
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