Apple's iPhone sales were weaker than usual this May, analyst says
By Emily Bary
Inflationary pressures seem to be impacting sales of Apple's key product, says KeyBanc
Spring is rarely an exciting time for iPhone sales, as consumers await the fall launch of new models, but this May's sales were likely below typical patterns, according to an analyst.
KeyBanc Capital Markets analyst John Vihn wrote Thursday that his checks with wireless carriers found "muted" sales of Apple Inc.'s (AAPL) iPhones during the month of May, though these generally were in line with the expectations stores had for the period.
May domestic iPhone sales fell 8% from a month before, according to his data. Typically, May would see a 3% rise in sales compared to April, according to data from the past five years. May sales were also down 14% on a year-over-year basis when looking domestically.
"This likely reflects continued inflationary pressure impacts on consumer spending, partially offset by increased sales traffic from Memorial Day weekend and summer break," he wrote in a presentation to clients.
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Vihn pointed to "resilient" demand for the iPhone 14 Pro and iPhone 14 Pro Max levels, as has been the case since their debut. On the flip side, "most carrier stores still have ample iPhone 14/Plus inventory in stock, reflective of lower iPhone 14/Plus demand vs. Pro/Max." The Pro and Pro Max models are more expensive, and a greater mix of those devices is seen as beneficial to Apple.
Vihn covers various component suppliers to Apple, and he wrote that his proprietary data offer a neutral read for players like Broadcom Inc. (AVGO), Cirrus Logic Inc. (CRUS), Qualcomm Inc. (QCOM), Qorvo Inc. (QRVO) and Skyworks Solutions Inc. (SWKS) That's because his expectations for component units already reflected the prospect of slowness in the June quarter.
Executives acknowledged macroeconomic impacts throughout the business when speaking on Apple's latest earnings call.
Read: How Messi fits into Apple's new strategy
-Emily Bary
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06-09-23 1110ET
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