Apple’s iPhone demand is mixed, KeyBanc says (AAPL)

Some iPhone demand is slowing, according to investment firm KeyBanc Capital Markets. Some is not.

The bank’s October survey shows that demand for Apple’s (NASDAQ:AAPL) iPhone 15 and Plus has slowed meaningfully, though that’s partially offset by healthy demand for the iPhone 15 Pro and Pro Max.

Store inventories are showing a “meaningful” increase, above last year’s iPhone 14 inventory levels, while the investment firm’s “First Look Data” also reflects weaker iPhone sales that are below historical trends.

“Overall, our data is telling us we should expect in-line growth with last year for F1Q24,” analysts Brandon Nispel and Evan Young wrote in a note.

The lack of new products in October and the later than typical iPhone release in September could also be affecting sales, the analysts said.

“We continue to believe that lower upgrade rates and softer customer demand will pressure Hardware revenues for the [fiscal first quarter].”

KeyBanc’s survey data is moderately negative for the Apple (AAPL) supply chain, including Cirrus Logic (CRUS), Qualcomm (QCOM), Qorvo (QRVO) and Skyworks Solutions.

Keybanc is Sector Weight-rated on Apple (AAPL) and its estimates are below-consensus. A consensus of analysts estimate that Apple (AAPL) will earn $2.10 per share on $118.02B in revenue.