Neil Hughes
Apple has historically added an extra week to its December quarter when the 31st of the month falls on a Saturday — Â which it does again this year. That extra time could add 3 million iPhone sales to the three-month period, one analyst has predicted.
Maynard Um of Wells Fargo believes that Apple management has the discretion as to when to add a 14th week to the quarter. But given that Dec. 31, 2016 is a Saturday, he believes the company will continue its trend, and include an extra week in this year's December quarter.
He estimates that an extra week could add 3 million iPhone units to consensus, which is why Um's forecast calls for 77 million iPhones to ship in the December quarter. Currently, general market expectations call for 74 million units in the holiday period.
If Um's forecast proves true, the iPhone would close out 2016 with its biggest quarter ever. The previous record, 74.8 million units, was achieved in the December 2015 frame.
iPhone sales this fall will be closely watched by the market, as it is expected to be the first full quarter of sales for Apple's next-generation handset, known colloquially as the "iPhone 7." In a break from Apple's typical release patterns, this year's upgrade is expected to feature largely the same design as the previous two generations, with Apple focusing on a thinner profile without a 3.5-millimeter headphone jack, as well as a new high-end dual-lens camera on the 5.5-inch "Plus" model.
Because Apple management have not yet confirmed the timing of this year's fall quarter, Um said the question of a possible 14th week will be a key item to listen for during today's quarterly earnings conference call.
Apple will report the results of its June quarter after markets close. A conference call to discuss the results with analysts and members of the press will follow at 2 p.m. Pacific, 5 p.m. Eastern. AppleInsider will have full, live coverage.
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5 Comments
It's depressing that this makes news and affects the discussion of Apple's financial results among the pro analysts. The iPhone 4S quarter was "extra huge", as I recall, due to the extra week of sales, and it was one of those big "peak Apple" quarters that analysts echo chambered on. These "professionals" really should know how to take this into account and normalize quarterly financial data so that every quarter represents the same time frame for when they make sequential quarter and year-on-year quarter comparisons.
This is such BS: It assumes that people are stupid, and can't/don't do apples-to-apples (npi) comparisons in assessing fundamentals.
I don't know anyone halfway serious who doesn't.
Add: For those who are silly enough to think it will matter positively in 2016, allow then for the fact that it will matter negatively in 2017.
Irrelevant unless they have found a way to make the year 53 weeks long while it remains 52 weeks for everyone else in the business. This analyst Maynard Um of Wells Fargo, like most of them, must be a moron. Adding a week on that quarter means subtracting one from the next. The inference is the rest of the world is as stupid as Um is. Any effect will be discounted by anyone with a brain in the investment community. What's more disturbing is the tech media picking up this idiot's remarks. It doesn't say too much for their understanding of numbers beyond 2+2=4.
These are the same clowns throwing out ridiculous things like Apple generating $3B in App Store revenue for Pokemon Go. God I hate sell side analysts.