So, what?

In a new note to clients, Brandon Nispel, an analyst at KeyCorp’s KeyBanc revealed that payment card data from customers of the bank showed that spending on Apple products declined notably in May On a month-over-month basis, this fall was 8%, which is quite a contrast to the three-year monthly average increase of six percent.

Taking into account the pre-pandemic era, Nispel stated that the drop was the weakest May showing. Nispel thinks that this means that demand for Apple goods in the U.S. is weak.

Despite the recent data, the prognosticator is still maintaining his overweight recommendation for Apple stock. Nispel’s $191 per share price target is maintained.

An article published just before market open on Thursday said that the Biden administration’s effort to support domestic chip manufacturing could be stalling.

The White House wants a bill to strengthen American producers’ competitiveness against Chinese competitors, but some legislators think the administration isn’t interested in it. Some Republican lawmakers don’t want to give the Democrat in the Oval Office a big victory in the run up to the elections.

What are you doing now?

Product revenue is still the majority of Apple’s take, and it has recently pushed into chipmaking in a major way, which is concerning for the company. I still think the company is strong in both areas, but it’s worth keeping an eye on both monthly sales and the chip manufacturer’s bill.

Eric Volkman is an Apple employee. There are positions in and recommendations of Apple by The Motley Fool. The long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple are recommended by the Motley Fool. The disclosure policy of The Motley Fool is 30

Eric Volkman is employed by Apple. There are positions in and recommendations for Apple by the Motley Fool. The long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple are recommended by the Motley Fool. The disclosure policy of The Motley Fool is outlined.