Apple (AAPL) shares fell Wednesday after reports that the technology giant was ditching its plans to boost iPhone production after demand falters.
However, according to TF International Securities, the reports do not seem to be accurate.
"Rumored Apple ditching iPhone production increase sounds a little bit weird to me. As I surveyed before, Apple had production switch plans from iPhone 14/14 Plus to iPhone 14 Pro/14 Pro Max/price-cut 13, but I didn't hear of any overall iPhone production increase plan," an analyst said in a Twitter (NYSE:TWTR) thread.
TF International has a survey result that shipment forecasts of iPhone 14 Pro and Pro Max will "increase by about 10%." This will benefit the iPhone ASP/product mix for 4Q22, the analyst believes, adding that "the demand for iPhone 14 and 14 Plus is obviously lackluster."
Apple shares (NASDAQ:AAPL) are currently down 2.5% at around $148 per share after initially hitting a low of $144.84 earlier in the session.
"The order increase for iPhone 14 Pro, 14 Pro Max, and price-cut 13 could offset the potential order cut of iPhone 14 and 14 Plus. So I expect total 2022/4Q22 iPhone shipments to be roughly aligned with consensus despite many people worrying about the recession," TF added. "I predict that Apple will likely offer a positive outlook for 4Q22 at the next earning call assuming iPhone shipments won't decline significantly starting December."
By Sam Boughedda