Market Overview

'No Evidence' Of iPhone X Component Cuts, Says Rosenblatt Analyst

'No Evidence' Of iPhone X Component Cuts, Says Rosenblatt Analyst
Related AAPL
Wall Street Starts The Day In Risk-off Mood As Global Sentiment Weakens
Intel Is The Semiconductor Sector's Only Candidate For Estimate Raises, Nomura Says In Upgrade
Tumblin' Tuesday (Again) - Markets Turn Ugly, Dow 25,000 Fails (Seeking Alpha)

Apple Inc. (NASDAQ: AAPL) shares have shown a lack of direction since the commercial release of the iPhone's latest iteration. 

Shares were lower Tuesday on concerns triggered by a reports of a downward revision to the iPhone X forecast. But a Rosenblatt Securities analyst sees no reason as to why the stock should move down.

The Analyst

Rosenblatt Securities analyst Jun Zhang maintained a Buy rating and $180 price target on Apple.

The Thesis

No evidence exists of further component order cuts — especially orders for iPhone X-specific 3-D sensing or OLED panels — after the holiday season, Zhang said in a Tuesday note. (See the analyst's track record here.)

Taiwanese media reports and estimate cuts could be confusing the market and are referring to previously mentioned iPhone 8/8 Plus production cuts, Zhang said.

The analyst said he expects an iPhone X production ramp in December and maintained his iPhone X production estimate of 35 million-plus units for the March quarter.

"Overall, iPhone component suppliers could see a 25-percent decline QoQ in the March quarter; however, iPhone X component suppliers would still see a flat sequential March quarter."

In the North American market, iPhone X sales were stable throughout the holiday season, while sales have likely accelerated in the Chinese market over the last two weeks, Zhang said. Citing Rosenblatt's industry research with Chinese operators, the analyst said iPhone X sales likely surpassed combined iPhone 8/8 Plus sales so far.

The recent estimate adjustments could be attributed to previously bullish views on the iPhone X cycle, Zhang said.

The Price Action

Apple shares have gained about 51 percent year-to-date.

At the time of publication, the shares were down 2.62 percent at $170.42.

Related Links:

Survey: Santa Is Bringing Strong Apple iPhone X Holiday Sales

Apple Analyst Shrugs Off Demand Concerns: 'Gross Margin Is The Key'

Photo courtesy of Apple.

Latest Ratings for AAPL

Oct 2018WedbushInitiates Coverage OnOutperform
Sep 2018NomuraMaintainsNeutralNeutral
Sep 2018JP MorganInitiates Coverage OnOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: iPhone X Jun Zhang Rosenblatt SecuritiesAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

VIABImperial CapitalUpgrades29.0
CDNSJP MorganUpgrades51.0
EBAYRBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

This Day In Market History: The S&P 500 Closes Above $400

3 Industries Set To Witness Win-Win Disruption From Blockchain