October 20 - Ahead of Apple's fiscal 2022 Q4 earnings call on October 27, Morgan Stanley believes Apple's September quarter results will top Wall Street expectations, although the firm slightly lowered its price target on the stock.

In a note to investors, Morgan Stanley analysts offered a cautious view of Apple's financial performance. However, they expect the company to report revenue growth.

ErikWoodring forecasts Apple's September quarter revenue at $90.1 billion. The estimate was 2 percent higher than Wall Street's forecast of $88.4 billion and, if accurate, would break a record for the quarter.

As the year draws to a close, Woodring predicts Apple's December quarter revenue will reach $133.7 billion. It also beat Wall Street expectations by an average of 4%.

The combination of iphones, ipads and Macs will likely be the main driver of Apple's growth. As of October 18, the iPhone14Pro and iPhone14ProMax had a delivery time of 26.5 days.

Morgan Stanley forecasts 51.1 million iphones shipped in the September quarter at an average selling price of $838, which could bring in $43 billion in iPhone revenue.

iPad revenue is expected to be flat from last year at $8.3 billion, with shipments of about 16 million units; Mac revenue is likely to come in at $1.04 billion, up 14% year over year. It expects to ship 8 million Macs in the September quarter.

Analysts forecast +7% quarter-on-quarter for wearables in the September quarter, but below the average seasonal revenue of +15% over the past five years. The new  Series8, Apple Watch Ultra, and AirPodsPro may not be enough to drive significant revenue growth.

In the end, Woodring estimates Apple's services revenue at $19.7 billion. It believes these factors, along with Apple's 14-week December quarter, will drive an acceleration in services revenue growth year over year.

Morgan Stanley has slightly cut its price target on Apple AAPL stock to $177 from $180 in July 2022.

Declining performance in wearables and services may have contributed to the lower target price. In addition, the note mentioned that AppStore revenue was down about 2% year over year, which Morgan Stanley attributed to a decline in gaming revenue.

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About Gestant Display

Gestant Display Technology Co.,LTD was founded in 2012 in Shenzhen China. Even, the founder of the company, has more than 15 years of rich experience in LCD display industry. He has been engaging in the basic research of LCD display technology in Japan since his graduate school and has been working in the flat panel display industry after graduation.

Proficient in the manufacturing process and technology development of LCD / OLED / polarizer, Even was also one of the members of China liquid crystal Association who has a senior industry background and supply chain resources. In the past three years, he assisted his shareholders in building factories, purchasing equipment，establishing production lines, and successfully obtaining ISO9001 and ISO14001 system certificates.

He has established good business relations with major panel manufacturers in China (BOE /Tianma / IVO /EDO / Visionox), and the glass supply is stable and sufficient.

Gestant Display's products are widely used in Smart wear，Smart home，Outdoor photography，IP phones, Medical care, Industrial control equipment, Automotive and Vehicle displays, Instrumentation, and other Information terminal applications which could offer long-term after-sale services(such as 2 years quality warranty, long-term supply) .