UBS has cut the target price of Apple stock $335 a share. The lowered target for AAPL followed a sharp decline in iPhone sales in China and supply chain concerns (via AppleInsider).

AAPL upside down

AAPL Still a Buy, But 5G ‘iPhone 12’ Could Face Delays

In the note, analyst Timothy Arcuri said that Chinese iPhone sales in February fell by 61% compared to the same time last year. He also reduced his prediction for iPhone shipments in March to 40 million, down from 43 million. He wrote:

Consensus iPhone estimate of 43 million is only 500,000 below last year, but the data implies close to 2 million impact in China alone.

Apple’s supply chain is amongst those hit by the coronavirus outbreak in China. Consequently, Mr. Acruri raised concerns about its capacity to manufacture the expected iPhone 12. The analyst estimates production will have returned by the end of Q2 2020. However, he said that if significant production issues continue into June, Apple may have to delay the launch of what we expect will be a 5G iPhone. Mr. Acruri still considers AAPl a ‘Buy’ stock. However, he cut the 12-month target price to $335 from $355.

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