From a note to clients by analyst Jun Zhang that landed on my desktop Wednesday morning:
We believe iPhone XR sell-through largely improved during China’s “11.11 holiday” due to many online retailers providing a 10-15% discount on the iPhone XR.
Our research indicates that iPhone XR unit sales (after one month of unit sales) have reached iPhone Max unit sales and have surpassed iPhone XS unit sales (after two months of unit sales) in China. The improvement in iPhone XR sell-through rates is encouraging. Despite this improvement, we continue to believe iPhone XR production may still face some downside risk after the holiday season, as we believe current iPhone XR production is still above sell-through rates.
Maintains Neutral rating and $200 price target.
My take: Zheng blows hot and cold on Apple. When he blows cold, the stock gets a runny nose. When he blows warm? We’ll see.