Discretionary spending is being slashed due to global inflation trends, with smartphone shipments down 9% year on year.
The iPhone 14 launch was also mixed, while political wrangling between China and the US is having an effect on computer chip production rates.
Amid these concerns, the Bank of America recently downgraded AAPL from buy to neutral, and Zacks Investment Research reduced its earnings per share (EPS) forecast from US$1.31 to US$1.26.
However, financial analyst Danni Hewson at AJ Bell said: “Any small upside surprise compared to consensus analysts’ earnings forecasts could see Apple’s annual net income exceed $100bn for the first time, the sort of figure that will write more than a few headlines.”
