Apple analyst raises iPhone revenue estimates despite macroeconomic uncertainties – two factors at play

Macroeconomic uncertainties have not spared the powerful in the tech sector, but one analyst believes Apple Inc.

will exceed hardware revenue expectations in the September quarter.

What happened

KeyBanc Capital Markets’ “First Look Data” in September showed strong high value (over $399) credit card and debit spending from US consumers. Indexed spending rose 11 percent month-over-month, analyst Brandon Nispel said.

This is against the historic pattern of a spending slowdown in September from August, he added.

The analyst said the consensus forecast for the September 2022 quarter predicts growth of 8 percent. He further emphasized that over the past three years, Apple’s hardware revenues have risen 10 percent quarter-over-quarter in September.

KeyBanc estimates a growth of 11 percent, which represents an advantage over the consensus estimate, Nispel added. Apple’s hardware products accounted for about three-quarters of total sales in the June quarter.

Nispel expects Apple’s September quarter to benefit from an extra week of iPhone sales, a shift in product mix to more expensive devices like the Pro and Pro Max, and the $899 iPhone 14 Plus to replace the $699 iPhone 13 Mini.

Accordingly, the analyst increased its September quarterly revenue and adjusted Apple EBITDA estimate to $90.4 billion and $30.4 billion, respectively.

Nispel maintained an Overweight rating and a $185 price target for Apple stock.

By Shanthi Rexaline

© 2022 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.