September 8, 2024

Demand for iPhone 15 is Lower Than That of iPhone 14 [Kuo]

Posted August 2, 2023 at 1:50pm by iClarified · 5672 views
Demand for the next generation iPhone 15 is lower than that of the iPhone 14, according to a new report from TF International Securities analyst Ming-Chi Kuo.

In a preview of how Apple's earnings report on August 3 will affect Apple stocks and the supply chain, Kuo says...

Although the 4Q22 iPhone shipments had declined due to the shutdown of Hon Hai's Zhengzhou factory in November 2022, most component shipment plans didn't change significantly in 4Q22. Unless the demand for the iPhone 15 is better than market expectations after launch, most of the suppliers will face growth pressure in 2H23 as the demand for iPhone 15 is lower than that of iPhone 14.

The analyst also notes that Apple is significantly behind its competitors in generative AI and thus will not likely say much about AI on its upcoming earnings call or integrate AI into hardware products next year.

At present, there is no sign that Apple will integrate AI edge computing and hardware products in 2024, so it is difficult to benefit the stock prices of Apple and its supply chain.

Vision Pro shipments for 2024 are expected to be quite small, so the headset is not likely to have a large effect on stock prices. However, Apple's EPS could beat market expectations due to service business performance, component cost decline, and exchange rate changes, positively affecting its stock price.

More details in the full report linked below...

Read More