Apple rises even as Canaccord Genuity cuts estimates on consumer worries

Apple (NASDAQ:AAPL) shares rose fractionally in premarket trading on Wednesday even as investment firm Canaccord Genuity lowered its 2023 and 2024 estimates on the tech giant, citing worries over the health of the consumer. 


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Analyst T. Michael Walkley, who has a buy rating on Apple (AAPL), lowered his first-quarter iPhone revenue estimate to $68.3B and full-year iPhone revenue estimate to $199.6B, noting that while sell-through remains “strong” in North America, “we believe overall consumer demand is slowing for smartphones.”

Walkley also lowered estimates on the Mac and iPad businesses, even as Apple (AAPL) unveiled new MacBook Pro models, a new Mac mini and new M2 Pro and M2 Max chips on Tuesday, all of which “impressed” the analyst.

“Given macro concerns, we have modestly lowered our [fiscal 2023 and fiscal 2024] Mac and iPad estimates,” Walkey added in a note to clients.

“While we anticipate Apple will maintain to grow market share in these categories, we lowered our estimates for both categories given tougher year-over-year growth comps combined with global macro concerns.”

Late on Tuesday it was reported that Apple (AAPL) had postponed development of its augmented reality glasses and would instead work on the second-generation of its mixed reality headset, with the first-generation slated to be introduced later this year.

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