KeyBanc analysts reaffirmed their Sector Weight rating on Apple (NASDAQ:AAPL) while keeping hardware revenue estimates for the second fiscal quarter of 2024 below consensus.
The broker cited data indicating a month-over-month spending increase of 6% in February, surpassing the three-year average decline of 14%. This uptick is attributed to the launch of the Vision Pro on February 2nd and a weaker spending pattern in January.
Meanwhile, quarter-to-date spending is down 20% year-over-year, compared to an 8% decrease in the first fiscal quarter of 2024.
“Overall, our data is telling us we should expect below-avg. growth for F2Q24,” the analysts said in a note.
“While AAPL has under-performed YTD, our cautious stance remains: we expect soft U.S. upgrade rates and competition in China to challenge growth expectations, App Store regulation is likely an overhang, and conviction in a growth inflection is low,” they added.