Apple‘s iPhone shipments are set to fall this year, which would mark the first time the company’s smartphone growth rate is lower than that of its rivals in four years, according to analysts at UBS.
UBS forecasts that Apple‘s (ticker: AAPL) iPhone shipments will come to 229 million this year, down 0.7% from last year. That compares with expected 3.2% growth in shipments of smartphones powered by the Android operating system, backed by Google-owner Alphabet(GOOG).
“This would be the first time since 2019 that Apple would be undergrowing peers in units,” UBS analysts wrote in a research note on Monday. They said Apple’s relative growth is likely to be set back as Asian markets power sales this year, compared with the iPhone maker’s key North American market.
Global smartphone shipments fell more than 11% last year to 1.21 billion, the lowest level since 2013, according to market-intelligence firm International Data Corp. UBS expects 2.5% annual growth of smartphone shipments in 2023 and 3.5% in 2023.
Despite the projected fall in iPhone shipments, the UBS analysts say Apple remains one of their most preferred stocks in the sector due to growth in services revenue. They have a Buy rating and $180 target price on the stock, which closed at $152.55 on Friday.
However, the analysts say they are cautious on stocks in the Apple supply chain with Sell ratings on AAC Technologies (2018.HK), LG Display (LPL), LG Innotek (011070.Korea) and Luxshare Precision (002475.China).
In other Apple news, company, shareholders are being advised by proxy firm Institutional Shareholder Services to vote in favor of the company’s pay packages for top executives, including CEO Tim Cook.
In a research note, ISS recommended Apple shareholders vote for the company’s executive pay packages and director nominees at its upcoming shareholder meeting, according to Reuters. It’s a change from the previous year when ISS opposed the pay and bonuses package awarded to Cook in 2021, which came to nearly $100 million.
Cook is set to have a target compensation package of $49 million this year, down from $84 million in 2022, at least partly at his own request.
However, ISS is recommending Apple investors vote for a resolution demanding a report on median gender and racial pay gaps at the company, which the iPhone maker’s management has opposed, Reuters reported.
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