Apple's March-quarter financial results are set to be released on Tuesday, and all eyes are on what Apple will say — or won't say — about iPhone sales volumes. Here's what observers of the iPhone maker anticipate Apple will reveal.
Analysts at Cowen have cast doubt on the possibility a return to form for iPhone shipments will take place in this quarter, as well as for the foreseeable future, and while Services will provide a reliable high point in Apple's upcoming financial results, it may not be as much of a highlight as investors may think.
Investors consistently undervalue Apple's Services, and iPhone sales are strong, which has led Morgan Stanley to raise the target price for Apple stock to $234.
Analysts at Goldman Sachs have improved their view of Apple's share, raising the stock's 12-month target price from $140 to $182 under the belief demand in China is no longer an issue, at the same time as anticipating Apple will beat its guidance for the upcoming financial results.
Qualcomm's share price still has some space for growth following the surprise settlement with Apple, Morgan Stanley suggests, with the price potentially able to grow by another 15% due to both supplying Apple with modems and being a central figure in the creation of 5G networks.
Apple will be accelerating how it passes some of its giant cash hoard to investors, according to analysts at Wells Fargo, with the iPhone producer expected to offer a dividend increase and raise how many shares it buys back, though not by as much as it has in previous years
Apple chip partner TSMC has fallen short of earnings expectations because of the global smartphone market slowdown — but the worst appears to be over.
Apple's fortunes in China are slowly turning around, suggests Morgan Stanley, with a continuation of share growth for the iPhone user base in March taken as an indicator of better than expected results heading into Apple's upcoming quarterly financial results.
Japan Display has agreed to a $2.1 billion bailout from a Chinese-Taiwanese group, a deal that effectively saves the Apple display panel supplier, but at the same time puts to an end the Japanese government's attempts to keep the company from being owned by non-domestic entities.
Initiating coverage on Apple, Credit Suisse says that the slowdown in sales of the iPhone is expected to continue throughout 2019, with the smartphone business said to be in a "difficult spot" due to longer device lifecycles and a loss of effectiveness of price rises on revenue.
Apple has failed to provide enough "depth" in its new services to appease investors, JP Morgan claims, at the same time as suggesting firms in the iPhone supply chain saw good results in March, despite apparent signs of a continued iPhone revenue decline.
Apple's launches of its streaming video service Apple TV+ and other additions to the company's Services business won't offer as much of a gain as investors think, according to HSBC, with the iPhone maker arriving "too late" to make a major impact in any of the industries it is entering with its new offerings.
Apple Card may reap $1.5 billion in revenue and be in top 10 card issuers by 2024, resulting in a windfall not just for Goldman Sachs, but for the iPhone manufacturer as well, an HSBC analyst said in a Thursday memo.
The App Store is continuing to be a stable source of Services revenue for Apple, Morgan Stanley analysts claim, with revenue from the digital storefront up 15 percent year-on-year on the back of Chinese gaming revenue, but entertainment-related apps are apparently worth monitoring for a potential downturn.
After a brisk day of trading, Apple regained its spot as the U.S.'s most valuable company by market value, hitting a cap of $914.86 billion at close.
Apple on Monday announced plans to report quarterly earnings for the second fiscal quarter of 2019 at the end of trading on April 30, with company executives expected to detail the period's highs and lows in an ensuing investor conference call.
Famed investor Warren Buffett is uncertain about Apple's attempts to enter the highly-competitive streaming video market, but advises he believes its failure could end up being good for the company, especially one that strives for perfection in all areas of its business.
In contrast with some others, analysts at Bernstein and Morgan Stanley have declared that Apple is in a prime position to leverage its install base, and attract massive amounts of paid subscriptions with Apple News+, Apple Arcade, and Apple TV+.
Analysts from Goldman Sachs and Oppenheimer are expressing skepticism about the services Apple announced on Monday, even though the former is a partner on the Apple Card.
More analysts have passed judgment on the new services Apple launched during Monday's "It's show time" event, with Macquarie and UBS both highlighting the relative lack of surprises from what was speculated in the time before the event took place.
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Malcolm Owen
Mike Wuerthele
Roger Fingas
Mikey Campbell
