01:53 PM EDT, 04/30/2024 (MT Newswires) -- Apple ( AAPL ) is expected to meet fiscal Q2 guidance, but its Q3 guidance is expected to fall short of consensus, Oppenheimer said in a note Tuesday.

Apple's ( AAPL ) total Q2 revenue and "iPhone revenue excluding $5B impact" are expected to be flat, with new products such as Vision Pro and upcoming iPad Pro "not likely to deliver positive surprises," the investment firm said. Apple ( AAPL ) is scheduled to announce its Q2 financial results Thursday.

Oppenheimer lowered its fiscal Q3 sales estimates for Apple ( AAPL ) to $83.2 billion from $85.5 billion, citing "continued weaker iPhone sales trends in Greater China."

Oppenheimer attributed Apple's ( AAPL ) weakness in China more to macroeconomic factors than competition, expecting cautious spending among Chinese middle-class consumers amid declining real estate and stock portfolios.

"We're constructive on Apple's ( AAPL ) new iPhone cycle later this year, where we expect new iPhones to drive reacceleration in replacement due to novel AI [importantly, locally-run LLMs] features," Oppenheimer said.

Oppenheimer has an outperform rating on Apple's ( AAPL ) stock with a price target of $200.

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