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Bank Of America Highlights 4 Flaws In Disappointing Apple iPhone 7 Data

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Bank Of America Highlights 4 Flaws In Disappointing Apple iPhone 7 Data

Apple Inc. (NASDAQ: AAPL) shares have stabilized in early Monday trading following a volatile Friday selloff on a report by GfK that the iPhone 7 and 7 Plus registered 25 percent lower sales in their opening weekend than the previous iPhone model.

Bank of American analyst Wamsi Mohan believes the actual iPhone sales numbers are likely not that bad.

According to Mohan, the GfK data is missing several key components and a direct comparison between iPhone 7 sales and iPhone 6s sales is more difficult than it may seem.

“In our opinion this data is not representative of true demand as our conversations indicate that the data does not account for several factors including (1) Apple store, (2) online sales, (3) supply constraints, (4) comparability of data,” Mohan explains.

Related Link: All The Recent iPhone 7 Comments In One Place

He points out several additional factors that could be producing unfavorable comps in China. Apple has been aggressively opening new Apple Stores in China, and is now up to 41 locations. In addition, last year’s iPhone launch weekend took place closer to the Chinese Golden Week, which could have added to the difficult comp.

Despite the disappointing news, Bank of America remains bullish on Apple’s stock. The firm maintains a Buy rating and s $125 price target.

Latest Ratings for AAPL

DateFirmActionFromTo
Jan 2020MaintainsNeutral
Jan 2020MaintainsOverweight
Jan 2020MaintainsBuy

View More Analyst Ratings for AAPL
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Posted-In: Bank of America iPhone 7 iPhone 7 Plus Wamsi MohanAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

 

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