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Apple (NASDAQ:AAPL) has continued to see near-term strength in the iPhone, investment firm UBS said, citing recent supply chain checks and CounterPoint research data.
“…[Global] iPhone sell-through data in April and May, the first 2 months of the June quarter, is tracking up [to] mid-teens [year-over-year], implying the ~14% [year-over-year] sell-through growth in April we attributed to a pull-forward of demand continued into May,” UBS analyst David Vogt wrote in a note to clients. “Similar to April, we attribute sell-through strength in May to broad-based market fears of future iPhone price hikes arising from US tariffs on China and South East Asia exports. On a quarter-to-date basis through the end of May, we estimate iPhone sell-through is tracking roughly 4M above the same period last year and our [June quarter]estimate.”
Vogt, who has a Neutral rating and $210 price target on Apple, said the data is a “modest relief,” but does not believe it’s sustainable.
“Therefore, we do not expect the market to extrapolate 2 months of likely abnormal demand going forward given relatively uneventful offerings introduced at WWDC and soft purchase intent in the most recent UBS Evidence Lab survey,” Vogt added. “As such, we expect the near-term demand trends to moderate demand in the coming months and quarters.”