Investment analyst firm TD Cowen is predicting that Apple's next earnings call will show little growth, but says forthcoming AI features could prove significant.
iPhone 15 Pro range
Analysts such as JP Morgan in March 2024, and Morgan Stanley in November 2023, are consistently predicting that AI will boost Apple's iPhone sales. JP Morgan, though, has predicted that this boost will come in 2025 with the iPhone 17 range.
Now in a note to investors seen by AppleInsider, TD Cowen repeats the expectation of an AI boost, but is less bullish about it than others, despite keeping its $220 Apple price target. TD Cowen set that price in late 2023, based in part on increasing sales in India, and it is again expecting to see shipment in that country increase.
Its analysts even argue that the declining iPhone demand in China may be at least somewhat countered by increased sales in what it describes as the "underpenetrated" India.
Overall, TD Cowen expects that global iPhone sales will be down approximately 3% year over year, it predicts a seasonal recovery around the launch of the iPhone 16 range. It also predicts that Mac sales will have dropped around 4% year over year, while Services will have grown around 11%.
TD Cowen expects that iPad sales will have stabilized, even ahead of the May 7, 2024 launch of the new models.
Its analysts, though, say that its supply chain sources back up claims that demand for the Apple Vision Pro is falling. So far the Apple Vision Pro is only available in the US, however, and demand will always be highest at the time of launch.
They also say that the Apple Watch has been affected by the US import ban and removal of the blood oxygen feature.