Report by Inflection Point Research, LLC
IN
China contagion has spread to the US as IPR’s carrier, retail, and supplier checks indicate iPhone 14 sell-through continues to soften, coming in below expected demand for Apr. IPR believes AAPL’s planned test equipment purchases from Keysight, LitePoint and Anritsu were cancelled or delayed, suggesting slower production looking into 2H23. RF component purchases from Qualcomm, Cirrus, Broadcom, Skyworks and Qorvo have been trimmed, reflecting weakening demand. AAPL's Q3 hardware sales typically drop about -9% Q/Q, but IPR believes iPhone 14 could see declines closer to -20%. The iPhone 15 could also prove disappointing.