Morgan Stanley analyst Katy Huberty noted that investor fears that a further escalation in the U.S. trade fight would result in meaningfully weaker iPhone demand from Chinese consumers pushed Apple shares down 12% over the course of two weeks in May. However, she points out in a new note to investors that recent data from Jiguang, a push-messaging service provider, shows May marked the fifth consecutive month of year-over-year smartphone installed base share gains for Apple in China. Given the generally weak China demand environment late last year, and the investor fears of a dramatic drop-off in near-term iPhone demand, Huberty calls the Jiguang info a "constructive data point," adding that she thinks iPhone price cuts, greater usage of financing, lower VAT taxes and improved Chinese consumer confidence are all contributing to "surprisingly stable demand trends" there for Apple. Huberty keeps an Overweight rating on Apple with a $231 price target.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Benchmark downgraded Skyworks (SWKS) to Hold from Buy and removed the firm's prior price target after the company posted March quarter revenue that matched the Street consensus, but excess market inventories and soft consumer smartphone activity weighed on the company's guidance for the June quarter. Skyworks is likely in the process of seeing its end-market demand bottoming, while its market share position looks positive at most of the leading Android players, but the firm is concerned by the company's loss of about 10% net market share at its largest customer, Apple (AAPL), in its next generation smartphone that is expected to be announced this September, the analyst tells investors. When softer first half market demand is paired with the expected share loss at Apple in the second half, the firm's model suggests an annual revenue decline of about 13.6% in FY24 and then as the iPhone 16 accounts for the bulk of Apple's expected volumes in FY25, the firm looks for Skyworks' sales to be about flat year-over-year, the analyst noted.

Apple (AAPL) has poached at least 36 AI experts from Google (GOOGL) and has created a laboratory in Zurich in an effort to develop new AI models and products, Michael Acton of The Financial Times reports. According to an analysis performed by the Times of LinkedIn profiles, public job postings, and research papers, the company has undertaken a hiring spree over the past few years to expand its AI and machine learning team. Reference Link

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PayPal (PYPL) is scheduled to report results of its first fiscal quarter before market open on April 30, with a conference call scheduled for 8:30 am EDT. What to watch... To see the rest of the story go to thefly.com. See Story Here

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Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER - Philips... To see the rest of the story go to thefly.com. See Story Here

Bernstein upgraded Apple to Outperform from Market Perform with an unchanged price target of $195. The shares have de-rated significantly amid a weak iPhone 15 cycle and fears that Apple's China business is structurally impaired, the analyst tells investors in a research note. However, the form believes prevailing weakness in China is more cyclical than structural, and notes that historically Apple's China business has exhibited much higher volatility than Apple overall, given its "very feature-sensitive installed base." Bernstein believes replacement cycle tailwinds and incremental generative artificial intelligence features set up Apple well for a strong iPhone 16 cycle. Tactically, expectations are low entering the company's fiscal Q2 results, it adds. The firm tells investors to "buy the fear."