This article first appeared on GuruFocus.
Apple (NASDAQ:AAPL), a consumer-technology company producing iPhones and Mac computers, plunged approximately 9.6% by Friday's close as analysts assessed supply constraints and a weaker revenue forecast. Melius Research analyst Ben Reitzes maintained a buy rating but reduced his price target to $370 from $385. Reitzes suggested Apple could use Intel (NASDAQ:INTC), a U.S. chip manufacturer, to supplement processor manufacturing currently concentrated at Taiwan Semiconductor Manufacturing (NYSE:TSM), a contract chipmaker.
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Apple expects current-quarter revenue growth between 9% and 11%, below Wall Street's approximately 12% forecast. Management said shortages affecting processors and memory were restricting its ability to meet demand for iPhones and Mac computers. AI data-center expansion has increased competition for advanced components, while Apple's protective inventory buffers are declining. The company may consequently face rising input costs alongside limited product availability.
The $15 reduction in Melius' target represents approximately 3.9%, substantially smaller than Friday's 9.6% stock decline. At least four brokerages cut their targets after the results, while three raised them and the median objective remained near $330. Melius' Intel proposal represents an analyst recommendation rather than a confirmed sourcing agreement, making that distinction important for investors. Apple's next product launches, component availability and any formal supplier changes may determine whether the company can satisfy demand without accepting greater manufacturing or margin pressure.