UBS cuts Apple price target on ASPs, China sales

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From a note by analyst Tim Arcuri snagged by CNBC:

“Unlike last year [we] do not see ASP (average selling price) increases providing enough offset, with our forecast that blended iPhone ASPs increase only +3%Y/Y, leaving iPhone revenues -2%Y/Y,” Cihra wrote.

“We note these cuts are significantly less than the LITE news would imply,” said Tim Arcuri of UBS in his note. “Ultimately, we believe AAPL continues to face FX headwinds given ongoing [U.S. dollar] appreciation against key global currencies. In China, given [the dollar-yuan trade], the supply chain suggests many consumers are opting for high-end models w/similar specs from local competitors rather than the XR.”

Cuts price target to $225 from $240.

My take: Like Guggenheim’s Cihra, Arcuri is worried that iPhone prices have gone about as far as they can go. Hoping to get access to his note.