11:05 AM EST, 01/23/2025 (MT Newswires) -- Apple's ( AAPL ) fiscal Q1 earnings results are poised to be in-line with consensus but revenue for the March quarter will be affected by muted iPhone demand and foreign exchange headwinds, Morgan Stanley said in a note Thursday.

The firm said it will closely watch iPhone demand, especially in China, and any changes in pricing strategies or potential discounts to drive sales.

Morgan Stanley said it is cautious about near-term stock movements but expects upcoming catalysts like the iPhone SE 4 launch, iOS 18.4 release, and potential cloud or AI partnerships in China to drive growth.

Despite a low spend per user in 2024, there is a large base of eligible iPhone upgraders and Apple ( AAPL ) holds potential for long-term monetization through accelerated replacement cycles, targeted services monetization, and new product launches, the firm added.

Morgan Stanley has an overweight rating on Apple's ( AAPL ) stock with a price target of $273.

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