Apple's Taiwanese Suppliers Are Outperforming Seasonal Sales - Does It Hint at Resilient Demand? This Analyst Answers

Citi analyst Atif Malik noted Apple Inc's AAPL Taiwanese contract manufacturers, including Hon Hai, Pegatron, and Wistron, reported total October monthly sales growth of 10% month-on-month (3% decline year-on-year) versus a 3-year seasonality of 4% month-on-month over the past few days. 

Even though Apple sounded optimistic about China last week, iPhone sell-through in China amidst the Huawei Mate 60 launch remains a near-term concern for investors. 

Also Read: Apple and Suppliers Face Unanticipated Sales Slump Despite New Launches

Malik acknowledged that deep discounts for iPhone 15 during the Double 11 shopping holiday and short lead time, especially for iPhone 15 base models, might indicate some potential weakness in China. However, it's likely being offset by strong U.S. sales. 

The analyst has not seen supply chain cutting builds yet, and the above-seasonal big three ODMs' October sales show some resiliency so far.

Malik maintained his iPhone 15 units estimate at 81 million for CY23 while awaiting updates on Apple's supply chain build plans.

Price Action: AAPL shares traded lower by 0.76% at $184.98 on the last check Monday.