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Piper Sandler analysts lowered estimates on Apple (NASDAQ:AAPL) to reflect supply concerns amid protests at Foxconn’s key iPhone factory in the Chinese city of Zhengzhou.
The analysts lowered the revenue forecast for the December quarter to $119 billion, down from $127.3B on the expectations that Foxconn (TW:2354) shipped about 9M fewer iPhone 14 units produced last month.
Although the COVID restrictions have been relaxed in recent days, they remind Apple investors that more than 50% of iPhone production comes out of the Zhengzhou facility.
“While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5% of total iPhone 14 production and is likely to help only to a limited degree at this time,” the analysts wrote in a client note.
Still, they reiterated an Overweight rating on Apple stock as the brand is still “formidable.”
Apple stock price is trading modestly higher Thursday.
