iPhone continues to encounter cold! Barclays: Apple (AAPL.US) February hardware production and sales both weak

According to Barclays' supplier tracking report, Apple (AAPL.US) had lower hardware production in February compared to the previous month, reversing some of the gains seen in January. However, App Store saw a 15% year-on-year growth in February, bringing the average growth rate for the quarter to 10% so far. Currently, Barclays maintains a "neutral" rating on Apple with a target price of $158. Tim Long of Barclays Bank wrote in a report, "Overall, our survey still shows that iPhone sales continue to be weak, with sales and market share of iPhone in China declining, and the US macroeconomic conditions being weak, with only emerging markets showing strength, but not enough to offset." Long found that the EU's Digital Markets Act and the lawsuit between the US Justice Department and Google (GOOGL.US) are bringing risks to this iPhone manufacturer. In addition, Huawei is gaining more market share from Apple, which could lead to a decline in iPhone sales in China by 2024. Counterpoint Research reports that due to increased competition from Huawei, iPhone sales in China declined by 24% year-on-year in the first six weeks of 2024. More importantly, Barclays Bank has not seen any "significant design changes" in the iPhone 16, and expects that it will take until at least 2025 to see any surprises. Barclays points out, "We believe that iPhone 15 is not a good cycle due to weak demand and extended replacement cycles. Macro factors and high base effects are all coming together."