Apple could beat its quarterly record for revenue set at this time last year, on the strength of the iPhone, increased Mac sales, and services, one analyst believes. But that growth could also be at the cost of 2017 expansion and a soft "iPhone 8" demand.
iPhone shipments in the coming quarters could be lower than Wall Street expects, as Apple works to reduce excess channel inventory ahead of the anticipated "iPhone 7" launch, in what could be the last painful quarter before over a year of growth, according to Brean Capital.
Though the firm remains bullish on Apple, Brean Capital believes Apple will see total iPhone sales for 2016 drop by 16 million units, amidst a slowing smartphone market.
As shares of Apple remain under $100 after recent losses, Brean Capital is standing by its $170 price target, predicting the iPhone will outperform lowered Wall Street expectations in 2016.
Recent concerns stemming from Apple's supply chain haven't swayed Brean Capital, which believes iPhone sales will continue to grow another 5 to 10 percent in calendar 2016.
Apple stock should bounce back to $130 by the end of the year, helped by solid iPhone sales and high profit margins, a Brean Capital research memo argued on Monday.
Apple's June quarter will come in higher than most on Wall Street expect, Brean Capital told investors on Monday, revealing it expects the company to have sold as many as 53 million iPhones in the three-month period.
Brean Capital began coverage of Apple stock on Monday, calling for a $160 price target, and for revenue to beat Wall Street consensus for the next three years, driven by higher-than-expected iPhone sales.
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Mike Wuerthele
David Silverberg
Neil Hughes
Roger Fingas
