Apple forecast to sell 41.5M iPhones in solid June quarter

Posted:
in AAPL Investors
Investors expect iPhone sales will return to growth in the current June quarter, moving up slightly from the same period a year ago, as the world waits for an anticipated "iPhone 8" this fall.




Cowen and Company analyst Timothy Arcuri issued a note to investors on Thursday, a copy of which was provided to AppleInsider, in which he forecast shipments of 41.5 million iPhone units in the current June 2017 quarter.

If that prediction proves accurate, it would be an increase from the 40.4 million iPhones Apple shipped in the same quarter of 2016. However, Arcuri noted that sell-through of iPhones to consumers could be flat or even down slightly, citing a 4 million unit channel inventory drawdown that Apple did in the June quarter of last year.

Wall Street consensus calls for Apple to earn $44.9 billion in revenue and $1.57 earnings per share. Both of those numbers would also be increases from the same period of last year, when Apple posted $42.4 billion in revenue and $1.42 EPS.

Investors don't expect much in the way of surprises from Apple's June quarter, though iPad sales could see a boost thanks to new models recently launched. But all eyes are on the following September quarter, when it's expected the company will debut its next-generation iPhone lineup, headlined by the flagship "iPhone 8."

Market watchers expect a so-called "super cycle" for the next iPhone, driven by demand for new form factors. The current iPhone design dates back to the iPhone 6 in 2015, but this year's "iPhone 8" is expected to feature a new chassis with a curved glass front sporting an OLED display.

While the "iPhone 8" could be announced in the September quarter, Arcuri doesn't expect it to find its way into the hands of consumers until the following December quarter. He believes the timing of the launch is largely irrelevant, as he sees the handset being a "powder keg" for sales and the company's stock price.

Cowen and Company has maintained its "outperform" rating for shares of AAPL with a price target of $160.

Comments

  • Reply 1 of 6
    blastdoorblastdoor Posts: 1,858member
    People sure are setting sales expectations high for the iPhone 8... 
  • Reply 2 of 6
    78Bandit78Bandit Posts: 184member

    An increase in shipments of the current models would not be unexpected at this time.  At some point in the near future Apple is going to have to start production of the iPhone 8.  Expectations for the 8 are extremely high and Apple will want to avoid shortages as much as possible.  Transition to the new model production will probably happen sooner than normal and suppliers and retailers will need to stockpile enough current model inventory to take them through September and maybe even into October.

    The defining quarter will be December 31.  Apple is going to need to hit between 90 million and 110 million units sold (depending on if the normal 20 million opening week sales are deferred to October) to meet expectations.

  • Reply 3 of 6
    avon b7avon b7 Posts: 2,473member
    'Solid'' would be an.understatement. It would be excellent to better last year's numbers being just a few months away from the announcement of a major design and feature upgrade.
  • Reply 4 of 6
    avon b7 said:
    'Solid'' would be an.understatement. It would be excellent to better last year's numbers being just a few months away from the announcement of a major design and feature upgrade.
    I think you're misunderstanding greedy big investors' nature. Solid to them doesn't mean Jello. I still don't quite understand why some analysts see iPhone sales doing well and other see iPhone sales doing poorly. How can there be so much of a divergence of opinion when looking at the same data.
  • Reply 5 of 6
    MacProMacPro Posts: 17,471member
    We need bad news on Apple not good. seems the only way AAPL ever goes up!
  • Reply 6 of 6
    Rayz2016Rayz2016 Posts: 3,946member
    avon b7 said:
    'Solid'' would be an.understatement. It would be excellent to better last year's numbers being just a few months away from the announcement of a major design and feature upgrade.
    That's why it's not going to happen. 
    badmonk
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