Apple Inc. (NASDAQ:AAPL), along with its suppliers Skyworks Solutions (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO), and Qualcomm (NASDAQ:QCOM), experienced a slight decline in their share prices on Monday following the release of the iPhone 15 and new versions of the Apple Watch. This drop was attributed to reports from Jefferies and Counterpoint Research, which pointed to potential weaknesses in iPhone 15 sales in China.
According to these reports, sales of the iPhone 15 in China have reduced by a double-digit percentage compared to the first 17 days of iPhone 14 Pro sales. The emerging competition from Huawei's latest smartphone, the Mate 60 Pro, is cited as a contributing factor. The Mate 60 Pro is equipped with an in-house chip that enhances 5G performance.
Data from Counterpoint Research, featured in a Bloomberg report, anticipates a 4.5% decline in iPhone 15 sales. Huawei is projected to sell between five to six million units of the Mate 60 Pro this year, with a significant increase to at least ten million units expected next year. Apple has not yet responded to these findings, as reported by Seeking Alpha.
InvestingPro data shows that Apple's market cap is a staggering $2780.0B USD with a P/E ratio of 29.81. Revenue for the last twelve months (LTM2023.Q3) stood at $383.93B USD, although it's worth noting that this represents a slight decline of 0.93% from the previous year. The company's gross profit for the same period was $166.82B USD, indicating a healthy profit margin of 43.45%.
InvestingPro Tips highlight that Apple's management has been aggressively buying back shares, which is usually a positive sign of the company's confidence in its future prospects. Additionally, Apple yields a high return on invested capital and its strong earnings should allow management to continue dividend payments. The company has raised its dividend for 11 consecutive years and has maintained dividend payments for 12 consecutive years.
Despite the downward trend in iPhone 15 sales and Huawei's growing market presence, Jeffries analyst Andrew Uerkwitz maintains a Buy rating for Apple with a $220 price target. The analyst consensus rates Apple as a Moderate Buy, with an average AAPL price target of $207.69. This represents a potential upside of 16.1%, based on the current consensus of 20 Buys and nine Holds.
For more detailed insights and tips like these, consider InvestingPro, which offers 16 additional tips for Apple and real-time metrics for other companies.
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