Wedbush analyst Dan Ives said in a research report that although apple (AAPL. US) was affected by the epidemic blockade measures, the bank's survey showed that the iPhone supply chain was still "surprisingly flexible". At present, the analyst maintains Apple's "overweight" rating with a target price of $200.
Ives pointed out that although Apple It is expected that due to the blockade measures, the company's revenue will be affected by US $4 billion to US $8 billion. However, at present, consumer demand remains unchanged, and "the demand trend so far in this quarter is still better than the guidance of the management".
Ives said: "concerns about the epidemic and supply chain should peak in the second quarter, and then in the new iPhone The third quarter and the third quarter after the release subsided. " The analyst also added that the initial production capacity of the next-generation iPhone "should be moderately increased" compared with the iPhone 13.
In addition, Ives pointed out that Apple's market share in China has increased by about 3% in the past 12 months, thanks to the 5g iPhone 12 and iPhone 13. Meanwhile, according to the statistics of canalys, a research company, apple accounted for 51% of the smartphone market in North America in the first quarter, thanks to the iPhone 13 to some extent.
Ives said that at present, Apple has about 1.8 billion active IOS devices in the world, which is Apple's "unique advantage" compared with other technology companies. In the past 3.5 years, it is estimated that 240 million iPhone users are in the device upgrade window, which will be a huge opportunity for apple.
Finally, Ives concluded that the combination of Apple's hardware business and services business, which the analyst believes is worth more than $1 trillion in itself, has helped to make the risk / return of the stock "very attractive" at the current level.