The smartphone industry is recovering from COVID-19 production slumps, although Cowen analysts suggest smartphone demand is still uncertain and Apple's flagship iPhones could launch a month or two later than usual.
Apple will be announcing its financial results for the second quarter of 2020 on Thursday, but the ongoing COVID-19 pandemic is likely to result in considerably weaker results than usual. Here are what some analysts monitoring Apple and the coronavirus situation expect to hear during the filing and conference call.
Apple is forecast to make fewer iPhones in the second quarter of 2020 than the same period in 2019, but the impact of the coronavirus on manufacturing will apparently be far less for Apple compared to the rest of the smartphone industry, partly helped by the popularity of the new iPhone SE.
After leading the pack with an Apple stock price climb in early December, Cowen has done so again just over a month later, hiking the price target to $350 on the strength of Services and the upcoming iPhone lineup.
Cowen equity research is raising its convictions on shares of Apple, boosting its price target behind near-term momentum in several operating segments and a belief that market share losses in China could potentially be offset by gains in India.
Analysts have passed comment on Apple's record fourth quarter results for the fiscal year 2019, with investor expectations and analyst estimates being beaten in a variety of ways, though the lower iPhone revenue is suggested to be an indicator of challenging December quarter results.
Apple's 2020 fiscal year should be more positive than some investors anticipate, Cowen suggests, with the iPhone 11 refresh assisted by a potential launch of a second-generation iPhone SE early in the cycle to help increase hardware revenues.
Apple's launches of the iPhone 11 and iPhone 11 Pro range are doing better than analysts initially predicted, but investor excitement in the 2020 5G-equipped iPhone apparently continues to be far higher than the 2019 range.
Analysts are weighing in on Tuesday's "It's Innovation Only" iPhone 11 launch event, with positive sentiment from industry watchers over the pricing of Apple TV+ and Apple Arcade accompanying the largely-expected iPhone upgrades.
Less than a week before Apple reveals its next-generation iPhones, Cowen forecasts Apple will start shipping the new models towards the end of September, but predictions of a second-generation iPhone SE and other future potential changes to the iPhone are seen somewhat more favorably.
Apple is staying relatively conservative with production of its 2019 iPhones, analysts suggest, with the overall number of units ordered from its assembly partners thought not to be that much higher than what the company requested for 2018's releases.
Apple TV+, the iPhone maker's upcoming video streaming service, is likely to achieve 12 million subscriptions by the end of 2020, analysts at Cowen suggest, with Apple breaking even in its original content production efforts if it reaches 10 million users.
Following the announcement of Apple's record-setting June quarter revenue of $53.8 billion, analysts have been quick to pass judgment on the iPhone maker's fortunes, with Apple exceeding expectations but still with some trepidation present for the fourth quarter results ahead of an anticipated high-performing 2020.
Analysts are weighing in on Apple's quarterly financial results the morning after its release, with generally favorable impressions of iPhone shipments better than anticipated and the growth of Services.
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.
Android smartphones focusing on improved displays and cameras haven't beaten the iPhone but are narrowing the gap, suggests analysts from Cowen, with main rivals Huawei and Samsung said to be considerably outspending Apple on the rear camera assembly in each of their flagship mobile devices.