Apple Stock Higher as IDC Report Shows Strong Mac Shipments in Q3

Apple (AAPL) Shares edged higher Monday on a report suggesting the tech giant was able to buck the cooling trend in personal computer demand with strong third-quarter MacBook shipments.

The widely watched survey from International Data Corporation showed global PC shipments fell 15% from a year ago to around 74.3 million units, driven by a 27.8% decline for HP Inc. (HPQ) . Apple, however, posted a 40.2% gain for the three months ending September, with shipments reaching just over 10,000 units of Mac personal computers.

Apple said earlier this summer that Mac sales fell 11.35% in the three months to June, its third fiscal quarter, to just over $7.38 billion. iPad sales fell about 2% to $7.224 billion.

“Consumer demand remained subdued although promotional activity from Apple and other players helped to mitigate the drop and reduce channel inventory by a few weeks across the board,” said Jitesh Ubrani of ‘IDC. “Supply also reacted to new lows by reducing orders, with Apple being the only exception as their supply in Q3 increased to compensate for lost orders resulting from lockdowns in China during Q2.”

Apple shares rose 0.14% in premarket trading to show an opening price of $140.25 each.

The numbers could allay at least some investor concerns over falling iPhone demand, following reports late last month that Apple had asked suppliers and assemblers to scale back plans to increase production of the newly launched iPhone 14 up to 6 million units, opting instead to aim for a target of 90 million – roughly in line with last year’s tally and its early year forecast summer – for the second half of this year.

BofA Global Research analyst Wamsi Mohan beat his Apple price target by $25 to $160 per share, while reducing his rating to “neutral” stock on September 29, as it anticipated “significant negative revisions to estimates” for its near-term earnings.

Mohan noted what he called a “weaker iPhone 14 cycle,” facing elevated risks to global consumer spending, decelerating gains in services revenue, a return to pre-COVID demand levels for iPads and Macs and the headwinds of the soaring US dollar.

Foxconn, Apple’s largest assembler and a key link in its global supply chain, reported record September quarter revenue last week and said it was “cautiously optimistic” about its outlook. sales for the last three months of the year.

Apple declined to provide a detailed September quarter revenue forecast after its better-than-expected third-quarter results in late July, but said overall revenue growth would likely outpace gains in the three months through June.

Apple said strong Chinese demand, along with a moderate supply chain impact, helped iPhone revenue rise 2.8% from a year ago to $40.67 billion. in the June quarter, just ahead of Street’s forecast of $40.5 billion.

Overall, Apple earned more than $19.44 billion for its fiscal third quarter, as revenue rose 2% year-over-year to $82.96 billion, just ahead of analyst estimates of $82.88 billion.

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