Apple was downgraded at KeyBanc Capital Markets which said shares of the world’s most valuable company are trading near all-time high valuation levels but foresees sales growth as likely to slow.
Kurt Schussler for Bloomberg News:
“US sales are likely to struggle” on a challenging upgrade cycle for the iPhone amid slower consumer spending, analyst Brandon Nispel wrote in a note, cutting his rating on Apple to sector weight from overweight.
While early demand for the iPhone 15 Pro Max has been better than expected, it seems to reflect users shifting from the iPhone 15 Pro, Nispel wrote. While this will help lift the average selling price, it means little change in overall unit sales, according to the analyst.
MacDailyNews Take: So, Apple selling about the same number of iPhones at higher prices is a bad thing. Got it.
Martin Baccardax for TheStreet:
“We expect the U.S. to experience its fourth consecutive y/y decline in F4Q23, potentially carrying into F1Q24,” [Nispel] added. “We’re looking for FY24 revenue growth of 3.5% vs. consensus of >6% where we have a more muted view on revenue across all of AAPL’s revenue segments.”
MacDailyNews Take: So, revenue growth of 3.5% in 2024 – during a likely U.S. recession, no less – is also a bad thing, according to Brandon Nispel’s illogical “analysis.”
KeyBanc Capital Markets clients, you deserve better.
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Seems like Brandon Nispel’s can’t decide what metrics are important to value AAPL. Meanwhile watch any funds managed by KEYBANC that have AAPL as a holding to see if they are just creating a dip to add to their position so they can show gains in 2024 to brag to their clients about returns.
On the Mac side of business, the Mac Studio has been an overpriced disaster. I know they don’t care, they just want to sell Macbooks dinosaur game. But our studio switched to PC for the first time in 14 years and saved a fortune by giving up on Apple. Now that our studio is running PC’s we’re considering switching to Android as well, but haven’t gone that far yet.