UBS cuts Apple estimates further below consensus on iPhone data

UBS analyst David Vogt says that following another month of soft iPhone sell-through, the firm lowered its iPhone unit and revenue estimates that were already below consensus. Given that October and November typically account for 66% of iPhone sell-through in the December quarter, an 8% year-over-year decline in November sell-through, according to Counterpoint, leads UBS to lower its December iPhone unit and revenue estimate to 74M and $67.2M, respectively, from 77M and $69.7M, the analyst tells investors in a research note. The firm’s updated iPhone December revenue forecast calls for a 4% year-over-year decline versus its prior expectation of flattish growth and consensus expecting 2% growth. Slightly offsetting its negative iPhone revisions, UBS tweaked its Apple (AAPL) Services’ revenue forecast higher almost 1% owing to better AppStore traction. The firm made a 2% negative revision in its December quarter revenue estimate to $120.8B from $123.3B, below the consensus of $124.9B, and earnings per share estimate to $2.25 from $2.31, below the consensus of $2.36. It keeps a Neutral rating on Apple shares with a $236 price target