apple inc AAPL Shares were down over 3% in premarket trading on Thursday, according to the company published results for the fiscal first quarter that fell short of expectations.

The Apple analysts: Wedbushs Daniel Ive maintained an outperform rating and price target of $175.

KeyBanc Capital Markets Analyst Brandon Nispel maintained an Overweight rating and price target of $177.

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The Apple thesis: Apple’s iPhone revenue loss in the first quarter reflects about 8 to 9 million units, which were squeezed out of the December quarter due to supply chain issues and 800 basis points of foreign exchange headwinds, Ives said.

“Overall, we believe that given the supply chain disaster, Apple viewed this better than the feared iPhone number and ultimately more of a supply issue than a demand issue,” the analyst said. Apple appears to be cutting some orders Macs, iPads and AirPods in the coming quarters to reflect a weaker consumer backdrop, he noted.

Ives also found that it all matters China Region saw revenue decline 7% year over year but grew on a currency-neutral basis. Despite everything, he described it as an “impressive achievement”. COVID-19 Closures in November and December.

“In short, in an overall glassy view, we view these results as positive as the demand environment is ultimately more resilient than the street expects, with China leading and center as a key heading for 2023,” Ives said.

The following are Ives’ takeaways from the earnings call:

• Continued Consumer iPhone Demand despite FX impact and macro headwinds.
• Annual sales growth for the March quarter is expected to be flat from the December quarter, with iPhone sales growth accelerating.
• Mac and iPad sales will decline double digits in the March quarter due to the macro backdrop.
• Services are growing year over year despite ongoing headwinds from advertising and gaming.

“Overall, our first assumption is that Apple trimmed the numbers given the…