By Sam Boughedda
Rosenblatt Securities analysts cut the firm's price target on Apple (NASDAQ:AAPL) shares to $165 from $189 in a note to clients Friday.
The analysts told investors in a note that ahead of Apple's next earnings report after the close on February 2, they have adjusted estimates for iPhone production pressure that has since been resolved, as well as macro services headwinds.
"Our Dec. 20 survey of over 1,000 census representative US adults found 25% intending to or already having purchased an iPhone 14, below the 29% in our similar survey Sept. 20. Of those buying/intending, 44% in Sept wanted the priciest model -- iPhone 14 Pro Max. That dropped to 34% in Dec," wrote the analysts.
"Taking the base results at face value suggests that US demand for iPhone 14 could have been 14% (25%/29% -1) weaker in December than Sept, likely driven by a 23% (34%/44% - 1) drop in iPhone 14 Pro Max demand. That would seem a logical response to production constraints in Zhengzhou that made Apple unable to deliver an iPhone 14 Pro or Pro Max ordered in the Dec. quarter on Black Friday or later in time for Christmas," they added.
They also stated that the firm expects better trends in later periods, reflective of a more normalized environment.