- Piper Sandler analyst Harsh Kumar saw a minimal impact on Apple Inc (NASDAQ:AAPL) from supply issues caused by Covid-19 lockdowns in China.
- Kumar maintained his price target of $200 (18.7% upside).
- China initiated strict lockdowns and production halts in Shanghai and Kunshan, home to some of Apple's key supply chain partners.
- Several of Apple's key suppliers, including iPhone assembler Pegatron Corp (OTC:PGTRF), had to shut down production amid the lockdowns.
- Hon Hai Precision Industry Co Ltd (OTC:HNHPF), operating as Foxconn, shuttered operations but was able to get back into action as the lockdowns eased quickly.
- Kumar acknowledged the June quarter as a seasonal low point for iPhone shipments and sales of other consumer electronics, thereby helping Apple's suppliers meet demand.
- Kumar saw investors anticipate softness in these areas over the next few months, suggesting that Apple's share price may not take a significant hit.
- He saw potential iPhone buyers more likely to postpone their purchase than switch to another brand or scrap their possible buy.
- Price Action: AAPL shares traded higher by 0.64% at $166.82 on the last check Tuesday.
