KeyBanc analysts said Tuesday that their latest Apple (NASDAQ:AAPL) iPhone carrier survey results reflect slowing iPhone 15 demand.
The firm said in a research note that the October carrier survey reveals slowing iPhone 15 sell-through, as demand for the iPhone 15/Plus has slowed meaningfully, although it is partially offset by healthy demand for the iPhone 15 Pro/Max.
"We're also seeing a meaningful increase in-store inventories to almost two DOI, which is above last year's iPhone 14 inventory levels. Key First Look Data also reflects weaker sales of iPhones (+3% m/m, -5% y/y), which were below historical seasonal trends," said the firm.
"Overall, our data is telling us we should expect in-line growth with last year for F1Q24," the analysts added. In addition, the survey revealed "two moving pieces in this month's numbers: 1) no new products in October; and 2) a later than typical iPhone release in September could shift sales into October."
Nevertheless, the analysts believe the current trends are likely due to timing, although they see lower upgrade rates and softer customer demand pressuring Hardware revenues for F1Q.
"We view our October carrier survey and Key First Look Data results as moderately negative for the Apple supply chain," the firm concluded.