Apple Inc (NASDAQ: AAPL) is in focus late on Monday following reports that weakening consumer demand is hitting its global computer shipments.
Apple stock reacts to a hit to Mac shipments
Data from IDC revealed today that Mac shipments in the first three months of 2023 tanked a whopping 40.5% on a year-over-year basis. That translates to 2.8 million fewer shipments versus the same quarter last year.
The research firm also said that Apple’s market share in personal computers now stands at 7.2% versus 8.6% a year ago. Among the top five computer makers, the tech behemoth’s decline in shipments was the largest in Q1.
Remember that Mac revenue was down more than 28% in Apple’s holiday quarter as Invezz reported HERE. In February, CFO Luca Maestri had already warned of a double-digit decline in Mac sales for the March quarter.
Is Apple stock worth investing still?
The update arrives about a week after Piper Sandler analyst Harsh Kumar reiterated his “overweight” rating on Apple stock. His $195 price target suggests about a 20% upside from here.
Kumar’s bullish view is based more on the iPhone story. He quoted his firm’s yearly teen survey to reiterate that Apple remains incredibly popular among teenagers.
87% of the respondents that participated in this survey currently owned an iPhone and 25% said they’ll upgrade to an iPhone 14 by the summer of 2023. Note that the iPhone still makes up over half of Apple’s total revenue.
Versus the start of the year, Apple stock is already up about 30% at writing.
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