Citing 'long tail' of iPhone 6 & 6 Plus sales, Cowen raises Apple target to $140

Posted:
in AAPL Investors edited June 2015
Projecting that iPhone sales will again top 50 million in the current June quarter, investment firm Cowen and Company raised its price target on Apple stock to $140 on Tuesday, on continued strong sales of the flagship iPhone 6 and iPhone 6 Plus.




Analyst Timothy Arcuri issued a note to investors, a copy of which was provided to AppleInsider, raising his target from $135. He cited supply-side sources who indicated that iPhone sales for the June quarter are likely to be around 50 million, a number higher than sell-side expectations of between 45 million and 46 million.

If Arcuri's predictions prove accurate, it would represent 42 percent year over year growth for the iPhone.

Revenue-wise, his forecast calls for revenue of $50.1 billion, or $1.88 per share, for the June quarter. That's not only greater than the $48.4 billion in revenue Wall Street expects, but it's also a full $3 billion higher than Apple's own guidance.

As for the following September quarter, Arcuri even expects that iPhone sales will be sequentially flat, reaching between 49 million and 50 million for the three-month period. This performance would reflect tremendous continued demand for the iPhone 6 and iPhone 6 Plus nearly a year after the hot selling handsets debuted.

And for revenue in September, Arcuri calls for growth of 5 percent to $53.7 billion, which is above Wall Street's expectation of $50.8 billion.




Arcuri said to investors that he believes Wall Street projections for the iPhone are "very conservative." Most investors seem to believe that global iPhone market share will continue to decline, but Arcuri said that's "highly unlikely" as the iPhone 6 series continues to gain share.

He also sees a number of catalysts on the horizon for Apple, led by the assumed launch of an "iPhone 6s" series in September. The anticipated debut of a 13-inch "iPad Pro," and the continued ramp-up for the Apple Watch were also cited as new growth opportunities for the company.

"The strength of the company's core mobile product offerings and iOS-based ecosystem will continue to expand addressable markets and capture incremental share from today's specialized and/or purpose-specific devices and ecosystems across all price tiers," Arcuri said.

Comments

  • Reply 1 of 11
    boredumbboredumb Posts: 1,417member



    TailGate...

    Apple Is Doomed

  • Reply 2 of 11
    Finally, an analyst that 'gets it'. The Apple Eco system is so often overlooked as one of the key drivers of sales. Fragmentoid come nowhere near it.
  • Reply 3 of 11
    bugsnwbugsnw Posts: 717member
    I'm excited about the upcoming iPad Pro as well as the next iPad update. I like it when Apple feels urgency and right now, they surely feel urgency about kicking sales in the butt. The upgrades should be pretty impressive.
  • Reply 4 of 11
    wizard69wizard69 Posts: 12,906member
    bugsnw wrote: »
    I'm excited about the upcoming iPad Pro as well as the next iPad update. I like it when Apple feels urgency and right now, they surely feel urgency about kicking sales in the butt. The upgrades should be pretty impressive.

    Well management did say that they had no intention of letting this market get away from them!

    As far as the next devices I hope for a lot but expect little. Less disappointment that way. I'm due for updates so I hoping for excellent new hardware.
  • Reply 5 of 11
    fallenjtfallenjt Posts: 3,982member
    Quote:

    Originally Posted by AAPLfanboy View Post



    Finally, an analyst that 'gets it'. The Apple Eco system is so often overlooked as one of the key drivers of sales. Fragmentoid come nowhere near it.

    and AAPL still dropped almost 2% up this point. Fck all Wall Street analysts.

  • Reply 6 of 11
    fallenjtfallenjt Posts: 3,982member
    Quote:

    Originally Posted by bugsnw View Post



    I'm excited about the upcoming iPad Pro as well as the next iPad update. I like it when Apple feels urgency and right now, they surely feel urgency about kicking sales in the butt. The upgrades should be pretty impressive.

    iPad Pro won't save tablet industry, let me tell you. The life cycle of iPad is like PC which is 3-5 years and that won't change. I bought my Air and I don't plan to upgrade until Air 4 at least or unless my Air die sooner. I believe the penetration of iPad for home users is close to saturation. iPad sale will go down to that level and stay there.

  • Reply 7 of 11
    brucemcbrucemc Posts: 1,540member
    Quote:

    Originally Posted by fallenjt View Post

     

    iPad Pro won't save tablet industry, let me tell you. The life cycle of iPad is like PC which is 3-5 years and that won't change. I bought my Air and I don't plan to upgrade until Air 4 at least or unless my Air die sooner. I believe the penetration of iPad for home users is close to saturation. iPad sale will go down to that level and stay there.


    Possibly, but it is still too early in the product's life to know.  Tim refers a bit to new iPad ownership - ~ 40% in US and I believe 70% in China - from the last call, and it was similar in the holiday quarter.  Other markets aren't referenced, nor the overall number.  Given those are the two largest markets, we can assume some reasonable new ownership - iPad market is still growing.

     

    Penetration in the enterprise & vertical markets (health care, manufacturing) is still an upside.  An iPad Pro won't by itself change the quantities much (though perhaps the financials more), but adopting innovations there to the main line may bring some growth back in conjunction with people finally starting to upgrade those iPad 2's.

     

    Personally, I think the iPad is a great form factor.  Mostly for personal use, but some for work.  

  • Reply 8 of 11
    irun262irun262 Posts: 121member
    fallenjt wrote: »
    and AAPL still dropped almost 2% up this point. Fck all Wall Street analysts.

    I fully expected APPL stock to drop today, much like it did so I 'sold short' 300 shares. Then I saw this piece of positive news and 'bought to cover' way to early thinking it would turn around. Never happened until very late. It screwed me up, reducing my trading gain for the day (which was overall still a loss because of the long term 300 shares I own).

    Investing in the short term is sure unpredictable based on what analysts say.
  • Reply 9 of 11
    quinneyquinney Posts: 2,526member
    irun262 wrote: »
    fallenjt wrote: »
    and AAPL still dropped almost 2% up this point. Fck all Wall Street analysts.

    I fully expected APPL stock to drop today, much like it did so I 'sold short' 300 shares. Then I saw this piece of positive news and 'bought to cover' way to early thinking it would turn around. Never happened until very late. It screwed me up, reducing my trading gain for the day (which was overall still a loss because of the long term 300 shares I own).

    Investing in the short term is sure unpredictable based on what analysts say.

    It's even more difficult when you don't know the stock symbols of the companies in which you invest.
  • Reply 10 of 11
    irun262irun262 Posts: 121member
    quinney wrote: »
    It's even more difficult when you don't know the stock symbols of the companies in which you invest.

    Good one!

    I don't know how I got that wrong.
  • Reply 11 of 11

    I always believe in safe investments when it comes to the stock market, and Apple is my favorite! Investing in Apple seems like a game where you never lose. And specially its only been a few years that I have made investment into stock, I have only seen the good times of Apple. I found a website very useful about why and how to invest in Apple and maximize my profits with relatively less risk

    http://tinyurl.com/why-invest-in-apple

    But I don't recommend using such tools if you don't know what you are getting into

Sign In or Register to comment.