Credit Suisse analysts expect iPhone strength to boost Apple's earnings

In anticipation of the earnings report to be released in 2 weeks, Credit Suisse analysts reaffirmed their Outperform rating on Apple stock and raised their fourth-quarter revenue forecasts by 1%, as well as their earnings per share forecasts by $0.04, which was higher than projected. That said, the target price was lowered to $190 from $201 a share, which shows a lowered outlook for fiscal 2023 and 2024 amid a weakening consumer backdrop.

According to analysts, Apple will only benefit from strong demand for the iPhone 14 and the massive shift to Pro and Pro Max models. In addition, rising iPhone prices in a number of regions will also boost margins.

In their note to customers, the company's analysts said they are confident that the installment program (available in most countries) will help mitigate the impact of higher prices on customers.

They also noted the likely improvement in the supply chain, which would benefit not only Mac sales but also gross margins.