Apple is bucking the consumer electronics downtrend

Apple is seeing solely restricted results from financial pressures which can be hitting consumer electronics gross sales, says Jefferies analyst Kyle McNealy.

Angela Palumbo for Barron’s:

Inflation has remained excessive, and electronics corporations are starting to anticipate that consumer spending is going to start out exhibiting that on a regular basis individuals are feeling the warmth. Best Buy (ticker: BBY) reported earnings Thursday, and instructed traders that it expects demand for consumer electronics to be pressured this yr.

HP (HPQ), a vendor of non-public computer systems, mentioned this week that there was a unbroken decline in demand for PCs that is hurting quarterly gross sales.

But Jefferies analyst Kyle McNealy wrote in a analysis observe Thursday that his evaluation of world internet visitors means that Apple (AAPL) isn’t struggling in the similar manner. “Page traffic is running well ahead of consensus as suggested by the month-over-month sequential growth in January for all products except iPhone which is approximately in-line,” McNealy wrote.

“We see page traffic tracking ahead of expectations as a positive sign that Apple isn’t seeing as much macro pressure as anticipated, at least through January,” McNealy added.

He maintained his Buy ranking on the inventory, with a goal of $195 for the worth.

MacDailyNews Take: Shocker.

Apple is best-positioned to climate inflation and recession because of its superior buyer demographics. – MacDailyNews, February 3, 2023

We’ve been overlaying Apple in these pages for over 20 years and have seen Apple carry out via a number of recessions.

It’s the non-Apple tech corporations which can be most in danger throughout a consumer spending slowdown since their customers have much less, and/or are much less prepared, to spend. Apple will probably be simply fantastic, even in a recession. And, throughout any inventory worth declines, Apple’s large buyback plan will probably be much more efficient in retiring shares and offering help for shareholders. – MacDailyNews, October 4, 2022

Apple’s consumer demographics recommend that it might be resilient, even amid inflation. Plus, a really robust revenue margin provides the firm loads of flexibility to soak up rising costs ought to the want come up. – MacDailyNews, November, 11, 2022

The most inflation- and recession-resistant massive tech firm is Apple, because of its superior buyer demographics. – MacDailyNews, October 27, 2022

Apple iPhone clients are the most recession-proof smartphone consumers. — MacDailyNews, September 7, 2022

The similar goes for Mac, iPad, Apple Watch, and Apple Services clients in private computer systems, pill computer systems, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022

When your cash turns into a higher concern, you wish to spend it properly… If it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022

See additionally: Apple’s indomitable Mac keeps gaining market share at the expense of x86-based vendors – January 19, 2023

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