Apple stock rose after the company's fiscal fourth-quarter earnings report earlier this month. But the rally has stalled in weak trading volumes amid reports of soft iPhone 15 sales.
Apple iPhone demand has been "muted" at the start of the holiday shopping season, UBS analyst David Vogt said in a client note Tuesday. He rates Apple stock as neutral with a 12-month price target of 190.
"Given the soft consumer spending trends (low savings rates, high credit card balances, price conscience behaviors) amid the current macroeconomic environment (interest rates, student loan repayments, inflation), iPhone demand through Black Friday and Cyber Monday was muted in our view," Vogt said.
Apple also is facing increased competition in China from Huawei's Mate 60 handset, he said.
Vogt is forecasting low single-digit iPhone revenue growth in the December quarter despite an uplift in average selling prices due to the popularity of the Pro models. He currently predicts 3% iPhone revenue growth in the period.
Other Analysts Keep Their Buy Ratings
Meanwhile, JPMorgan analyst Samik Chatterjee reiterated his overweight rating on Apple stock with a price target of 225. In a client note, he said iPhone supply now matches demand.
Evercore ISI analyst Amit Daryanani kept his outperform rating on Apple stock with a price target of 210.
Investor concerns about competition from domestic brands in China are overblown, Daryanani said in a client note. Chinese vendors like Huawei and Xiaomi offer lower-end smartphones while Apple plays in the premium segment of the market, he said.
Apple Stock Is In Consolidation Pattern
On the stock market today, Apple stock dipped 0.5% to close at 189.37.
After the company's fiscal Q4 earnings report on Nov. 2, Apple stock rose as much as 8.7% before pulling back starting last Friday.
Apple stock has been consolidating for the past 19 weeks at a buy point of 198.23, according to IBD MarketSmith charts.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
