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Apple to report Q1 2021 revenue above $100B, JP Morgan says

Credit: Andrew O'Hara, AppleInsider

Apple's December 2020 quarter will be the company's first with revenues above $100 billion thanks to the iPhone 12 and remote work tailwinds, JP Morgan analysts predict.

In a note to investors seen by AppleInsider, JP Morgan analyst Samik Chatterjee says that Q1 2021 revenue estimate is based on early adopters of the 5G-equipped iPhone 12 and iPhone 12 Pro lineup and continuing tailwinds from remote work and education trends.

The momentum from those areas are driving JP Morgan's revenue estimate of $110 billion and its earnings-per-share (EPS) estimate of $1.56. Both numbers are higher than the Wall Street consensus of $102 billion in revenue and a $1.41 EPS.

Chatterjee predicts that Apple will report iPhone shipments of about 80 million units in Q1 2021, which could result in revenue of about $66 billion for the segment. He says a better mix of iPhone 12 Pro and iPhone 12 Pro Max devices could also imply a better average selling price (ASP) than consensus.

Additionally, the analyst adds that work-from-home tailwinds during the coronavirus pandemic could be a larger driver to upside than investors expect. Recent Mac unit shipment reports and iPad supply chain checks support that theory.

Lastly, Chatterjee says that recent Sensor Tower data supports continued acceleration in Apple's Services sector — and particularly for the App Store. He expects sustained growth in the high-teen percentages into 2021.

The analyst maintains his 12-month AAPL price target of $150. That's based on a 2022 EPS estimate of $4.90 and a blended price-to-earnings multiple of 31x.

Shares of AAPL are currently trading at $141.22 as of publication time, up 1.62% in intraday trading.