Tech giant Apple (AAPL) has seen mixed results so far with regards to its iPhone 16 lineup. According to TF International Securities analyst Ming-Chi Kuo, Pro models are meeting expectations, but its base and Plus models are trailing behind last year’s numbers. In a post on X (formerly Twitter), Kuo mentioned that assembly orders haven’t really changed much, though suppliers kept busy during China’s National Day holiday to keep up with the demand for the Pro versions.
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Kuo also pointed out that some component orders for mid-November and onward were slightly cut back. This was mainly for the base iPhone 16 and 16 Plus models, but the reduction is pretty minor at less than 3% to 5%. The iPhone 16 Pro’s shipments are in line with last year’s 15 Pro, though shipping times are currently a bit shorter than they were then.
Looking ahead, investors will be shifting their focus to see how U.S. demand might be affected when Apple’s AI tool, Apple Intelligence, rolls out in late October. Kuo is sticking to his original production forecast of 88M to 89M units in Q4 2024, which is slightly lower than last year’s 90M to 91M units.
Some Analysts Aren’t Expecting Much from Apple Intelligence
While some might be looking forward to Apple’s rollout of Apple Intelligence, not all analysts are enthusiastic about its impact. Indeed, Jefferies analyst Edison Lee recently downgraded Apple from Buy to Hold due to the belief that the firm’s AI features will not meet expectations. In addition, a recent survey from JPMorgan suggested that few customers were willing to upgrade their devices solely to have access to AI features.
Is AAPL Stock a Buy or Sell?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, 10 Holds, and one Sell assigned in the past three months. After a 29% rally in its share price over the past year, the average AAPL price target of $248.90 per share implies 8.73% upside potential.
