Thursday, March 2, 2023 4:31 pm3 Comments

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Apple is seeing only limited effects from economic pressures that are hitting consumer electronics sales, says Jefferies analyst Kyle McNealy.

Angela Palumbo for Barron’s:

Inflation has remained high, and electronics companies are beginning to expect that consumer spending is going to start showing that everyday people are feeling the heat. Best Buy (ticker: BBY) reported earnings Thursday, and told investors that it expects demand for consumer electronics to be pressured this year.

HP (HPQ), a seller of personal computers, said this week that there has been a continuing decline in demand for PCs that is hurting quarterly sales.

But Jefferies analyst Kyle McNealy wrote in a research note Thursday that his analysis of global web traffic suggests that Apple (AAPL) isn’t suffering in the same way. “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 rating on the stock, with a target of $195 for the price.

MacDailyNews Take: Shocker.

Apple is best-positioned to weather inflation and recession due to its superior customer demographics. – MacDailyNews, February 3, 2023

We’ve been covering Apple in these pages for over 20 years and have seen Apple perform through multiple recessions.

It’s the non-Apple tech companies that are most at risk during a consumer spending slowdown since their consumers have less, and/or are less willing, to spend. Apple will be just fine, even in a recession. And, during any stock price declines, Apple’s massive buyback plan will be even more effective in retiring shares and providing support for shareholders. – MacDailyNews, October 4, 2022

Apple’s consumer demographics suggest that it could be resilient, even amid inflation. Plus, a very strong profit margin gives the company plenty of flexibility to absorb rising prices should the need arise. – MacDailyNews, November, 11, 2022

The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022

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

The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022

When your money becomes a greater concern, you want to spend it wisely… 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 also: Apple’s indomitable Mac keeps gaining market share at the expense of x86-based vendors – January 19, 2023

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