NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report are falling 0.79% to $98.64 in late-afternoon trading on Friday after its chip supplier Skyworks (SWKS) announced a 35% jump in third-quarter inventories, suggesting a "much more muted iPhone 7 ramp," Pacific Crest wrote in a note. 

The Cupertino, CA-based company is scheduled to report its own 2016 third-quarter financial results after Tuesday's market close, and iPhone demand will likely be in focus.

Deutsche Bank estimates that Apple will report a 14% drop in third-quarter iPhone unit sales from a year ago, which would represent 41 million units sold. The firm said its expectation is toward the bottom range of the consensus forecast for between 41 million and 43 million units.

Service revenue could offset "some of this pressure," given strong App Stores sales, but Deutsche Bank anticipates results will be in line with Apple's guidance of sales between $41 billion and $43 billion.

In all, analysts surveyed by Thomson Reuters are looking for adjusted earnings of $1.38 per share on $42.1 billion in revenue for the third quarter. A year ago, Apple reported adjusted earnings of $1.85 per share on $49.6 billion in revenue.

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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Apple's strengths such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: AAPL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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