Apple’s Overall Revenue Is Expected to Grow
According to Nikkei Asia, Apple has asked some of its suppliers to reduce production volumes.
Reports that Apple is reducing production of the iPhone 18 Pro and Pro Max models have triggered a short-term decline in the company’s shares. Nevertheless, JPMorgan analysts have raised their price target for Apple stock to $360.
According to Nikkei Asia, Apple has asked some of its suppliers to reduce production volumes. Following the report, the company’s shares fell by 2.5% before closing at $340.97.
JPMorgan believes the production cuts are related to Apple’s usual production planning and inventory management strategy rather than weakening demand.
Meanwhile, the company is reportedly increasing production orders for the iPhone Duo model by 30%. This move could bring production volume to approximately 10 million units for the remainder of the year. JPMorgan forecasts sales of 8.5 million units of this model in the December quarter.
Overall, although iPhone revenue is expected to decline by 2% year-on-year, Apple’s total revenue is projected to increase by 2%. Thus, despite reports about production adjustments, analysts remain positive about the company’s financial outlook.