Apple Inc. (NASDAQ: AAPL) saw its shares ease back in morning trading in New York after Morgan Stanley lowered its price target for the tech giant’s stock to US$200 from US$205 but maintained an upbeat view on the company's prospects.
In a note to clients, the US investment bank’s analysts said talk of weak supply chain orders for the first half of the 2018 calendar year are "largely noise," though they acknowledged that "late adopters" might be more sensitive to iPhone prices as the year goes on.
The Morgan Stanley analysts said they also believe that estimates for March-quarter average selling prices (ASPs) have "mis-modelled" the mix of higher-priced phones.
They forecast iPhone ASPs at US$815 for the period, well above consensus estimates for US$752.
In early morning trade, Apple shares were 0.4% lower at US$173.48.