Wall Street analysts are impressed with the resilience of Apple’s iPhone sales in a tough and worsening economy.
Turns out thousand-dollar smartphones are still proving to be essential purchases in a tough economy.
That’s the view of Evercore ISI analyst Amit Daryanani, who said that Apple Inc.’s latest quarterly results “validate not just the diversity of Apple’s revenue stream,” but also showcase “the ‘consumer staple’ nature of iPhones,” whereas investors may see the iPhones more as “a discretionary technology product.”
Wall Street had been nervous about the state of consumer-electronics spending headed into Apple’s Thursday afternoon earnings report, especially given cautious signals about the smartphone landscape from chipmaker Qualcomm Inc. (QCOM) as well as third-party data providers. Apple ended up surprising investors by sporting growth in its iPhone segment, whereas analysts were expecting declining revenue.
Daryanani left with the sense that the iPhone business was “poised to remain stable to modestly accelerate as production normalizes and emerging market share gains start to inflect higher.” He had a $190 price target and an outperform rating on the stock.
Rosenblatt’s Barton Crockett also called out the “amazingly durable iPhone… Apparently, the iPhone 14 Pro Max production constraints that kept most from being able to buy the device in time for Christmas last year, pushed a meaningful portion of buyers into the March quarter. Many waited, instead of canceling.”
MacDailyNews Take: Of course customers waited: If it’s not an iPhone, it’s not an iPhone.
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