Wells Fargo believes 'iPhone 7' will reaccelerate Apple growth, sell 80M+ this holiday
With Apple set to report its first-ever year-over-year decline in iPhone sales this afternoon, analysts continue to look forward to the anticipated "iPhone 7" launch in hopes that it will re-stimulate growth.
Wells Fargo analyst Maynard Um issued a note to investors this week, ahead of today's earnings report, in which he said he expects the "iPhone 7" will see a return to growth for Apple in the December quarter. Apple has already said iPhone sales would decline in the just-concluded March quarter.
Currently, he projects Apple could reach as many as 82.2 million iPhone units in the holiday frame. While that's a few quarters out, he believes his forecast is higher than market expectations.
Um believes analysts on Wall Street are too pessimistic, and potential growth following an "iPhone 7" launch is not yet priced into the company's shares.
For the March quarter, Wall Street is expecting sales of $52 billion and earnings per share of $2.00. The market also expects Apple will have sold 50 million iPhones in the three-month span, a decline from 61 million a year ago.
Um's own estimates call for Apple to have sold $51.7 billion with earnings per share of $2.01.
Looking forward to Apple's third fiscal quarter of 2016, the Street is currently expecting $47.4 billion in sales and $1.76 EPS. Um and Wells Fargo are forecasting $45.2 billion and $1.64.
Apple will report the results of its March quarter, and provide guidance for the June quarter, after markets close today. A conference call with the company's executive team to discuss the results will begin at 5 p.m. Eastern, 2 p.m. Pacific. AppleInsider will have full, live coverage of the event.
Wells Fargo has maintained an "outperform" rating for AAPL stock, with a valuation range of $120 to $130.
Wells Fargo analyst Maynard Um issued a note to investors this week, ahead of today's earnings report, in which he said he expects the "iPhone 7" will see a return to growth for Apple in the December quarter. Apple has already said iPhone sales would decline in the just-concluded March quarter.
Currently, he projects Apple could reach as many as 82.2 million iPhone units in the holiday frame. While that's a few quarters out, he believes his forecast is higher than market expectations.
Um believes analysts on Wall Street are too pessimistic, and potential growth following an "iPhone 7" launch is not yet priced into the company's shares.
For the March quarter, Wall Street is expecting sales of $52 billion and earnings per share of $2.00. The market also expects Apple will have sold 50 million iPhones in the three-month span, a decline from 61 million a year ago.
Um's own estimates call for Apple to have sold $51.7 billion with earnings per share of $2.01.
Looking forward to Apple's third fiscal quarter of 2016, the Street is currently expecting $47.4 billion in sales and $1.76 EPS. Um and Wells Fargo are forecasting $45.2 billion and $1.64.
Apple will report the results of its March quarter, and provide guidance for the June quarter, after markets close today. A conference call with the company's executive team to discuss the results will begin at 5 p.m. Eastern, 2 p.m. Pacific. AppleInsider will have full, live coverage of the event.
Wells Fargo has maintained an "outperform" rating for AAPL stock, with a valuation range of $120 to $130.
Comments
I maintain a "doom" rating on AAPL through 2017.
If Apple needs to get away from the boom and bust of seasonal product cycles and more predictable revenue streams then it should expand the iPhone upgrade program to other product line.
EDIT: Or the brand-new 6SE for just a dollar. Nice deals.
And, I suspect, that is exactly what Apple is preparing to do ...
My oldest grandson picked up an iPad Pro 9.7" yesterday -- His Mom paid for it.
Apple has a 0% financing option for other products including the iPad, but there is no upgrade option nor no AppleCare -- and it requires that you open another credit card account ...
She had little time on her parking meter, so that was too much hassle -- paid with ApplePay instead.
Apple could also expand the Upgrade Program to other countries.
Finally, they could sweeten the pot by offering tie-ins and other goodies, such as:
I thought you didn't pay, but had a fairy hood-brother?
Man, the little "god" would have fallen hard if that happens.
The iPhone 6 was pretty good, crappy battery life. 6S is quicker, still crummy battery life. The watch personally is a joke in my opinion, I was not at all impressed with my 42mm version that I bought new. I don't know how people think iOS is the best OS out there. I'm a longtime apple user and have never thought that.
Now android side offers so much more than apple its insane. Grandma can purchase the SE and have fun with that, but now the competitors on the high end side really have caught up to and far surpassed apple. Its undeniable now. Apple is having trouble putting stuff out like they really know how to lead anymore. It doesn't matter how they situate their business, people are going to flock to their best option.
Apple removing their home button, the audio jack, ramping up the meh iphone camera, switching to OLED displays, increasing the battery life, adding IP68 rating, apparently working with a six core processor for a future iPhone...this all sounds like mimicking Samsung excepting the audio jack removal.
I'm running both current iOS (on an iPhone) and Samsung android marshmallow right now bc I want to see the differences, and iOS bites it big time.
Apple should stop trying to make the iPhone paper thin and just make the freaking thing good. Their official battery case for the iPhone is uglier than the Chinese knockoffs on eBay. By simply making it they are admitting people want longer battery life. It has become industry standard recognition that iOS is a walled garden, why not shake it up a bit and make iOS more flexible. I think apple has it in the fingerprint recognition dept, but they definitely need work in other areas.
Also, will apple pay ever be like Samsung pay where you don't need NFC to use it? More than half of the places I've gone to that accepted apple pay the cashiers either don't know how to do an NFC transaction or the NFC component on the register is broken. With Samsung pay you can literally pay anywhere you could use a credit card.
I guess we will see with the note 6. Depending on that, the iPhone 7 (or even 8) is likely to be moot at that point if most of the rumors are true about the specs.