IT Home October 20th news, ahead of Apple's 2022 fiscal year Q4 earnings call on October 27, Morgan Stanley believes that Apple's September quarterly performance will exceed Wall Street 's expectations, although the institution slightly lowered its target price for Apple's stock.
In a note to investors, Morgan Stanley analysts took a cautious view of Apple's financial performance. However, they expect the company to report revenue growth.
Erik Woodring predicts Apple's revenue in September to be $90.1 billion. That estimate is 2% higher than Wall Street’s forecast of $88.4 billion and, if accurate, would break the quarter’s record.
As the year is approaching its end, Woodring predicts that Apple will earn $133.7 billion in the December quarter. This also exceeded Wall Street expectations, with an average of 4%.
IT Home learned that the combination of iPhone, iPad and Mac may be the main factor driving Apple's growth . As of October 18, the delivery time for the iPhone 14 Pro and iPhone 14 Pro Max reached 26.5 days.
Morgan Stanley predicts iPhone shipments in September to be 51.1 million units with an average selling price of $838, which could result in $43 billion in iPhone revenue.
iPad revenue is expected to be the same as last year at $8.3 billion, with shipments of approximately 16 million units; while Mac revenue may be $1.04 billion, with up 14% year-on-year. Mac shipments are expected to be 8 million units in the September quarter.
Analysts predict wearables will be +7% quarter-on-quarter in the September quarter, but lower than the average seasonal revenue of +15% over the past five years. The new Apple Watch Series 8, Apple Watch Ultra, and AirPods Pro may not be enough to drive a significant revenue growth.
Finally, Woodring predicts Apple's services revenue to be $19.7 billion. It believes that these factors, coupled with Apple's 14-week quarter in December, will drive Apple's services business' revenue to accelerate year-on-year.
Morgan Stanley has slightly lowered its target price for Apple AAPL stock to $177 from $180 in July 2022.
The decline in performance of wearable devices and services may be the reason for the lowering of the target price. In addition, the note also mentioned that App Store revenue fell by about 2% year-on-year, which Morgan Stanley attributed to the decline in gaming revenue.
