Morgan Stanley ‘turning more bullish’ on Apple

Morgan Stanley suggested that Apple may be “turning the corner” as unexpectedly strong iPhone sales led to an increase in September-quarter production estimates. “We think the Apple story could be turning the corner,” the bank declared, referencing “elongated replacement cycles,” “pent-up iPhone demand,” “structural gross margin tailwinds,” and reduced tariff and regulatory pressures.
Sam Boughedda for Investing:
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The bank’s Greater China Technology Hardware team lifted its September-quarter iPhone build forecast by 8%, from 50 million units to 54 million units, citing “better than expected iPhone sell-through in the June quarter” and “low channel inventory” that created a “larger channel fill opportunity.”
The revision was “entirely iPhone 16 (2M units) and Pro Max (2M units) models.”
While the firm already factored in a similar trend with its 55 million shipment forecast for the quarter, Morgan Stanley said the build increase raises the potential for upside in the December quarter.
The analysts explained that based on historical seasonality, December builds could range from 73 million to 92 million units, but the analysts expect a more realistic 73 million to 81 million, translating to 76 million to 84 million shipments.
C2H25 iPhone 17 builds remain unchanged at 80 million to 85 million units, compared with 84 million for the iPhone 16 in C2H24.
On the stock, Morgan Stanley said it is “turning more bullish” after being cautious since March.

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MacDailyNews Take: Morgan Stanley reiterated its “Overweight” (Buy) rating on AAPL with a $240 price target – which is laughably low.
As we’ve long said, Wall Street is a game: play it well or don’t play it at all. – MacDailyNews, March 20, 2007 (on which day AAPL closed at the split-adjusted price of $2.79 per share)

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