As industry watchers predict a downturn in iPhone sales, Morgan Stanley stands out with its upbeat assessment, providing a ray of hope for Apple enthusiasts and investors. The investment firm has raised its projections for iPhone production in the June quarter, hinting at a robust demand for the anticipated iPhone 16.
Erik Woodring, a representative from Morgan Stanley, highlighted recent conversations with key supplier Foxconn, which suggest a positive shift in order volumes, potentially up by as much as 5%. This increase is attributed to strong sales of older iPhone models in emerging markets and stable conditions in other global regions.
Despite facing the worst start to a year in a decade, Apple's recent developments indicate potential upside surprises in March quarter revenues and reduced risks for the June quarter, contrary to earlier predictions.
Morgan Stanley maintains its $220 price target for Apple's stock but notes potential growth catalysts, such as new hardware subscription models and faster-than-expected product launches. However, they also caution against possible challenges, including weakened global spending and stricter regulations targeting the App Store.
Other analysts offer mixed views. Wedbush remains optimistic, expecting a rebound in the September quarter, while Loop Capital predicts a decline throughout 2024, which would be the first since 2016.
As the debate continues, investors and Apple fans will be keenly watching the market's response to these conflicting projections.
