The shift of U.S. carriers from contract subsidies to installment pricing for smartphones could speed up upgrade cycles for Apple's iPhone, according to a new memo by financial services firm Piper Jaffray.
Lofty expectations were beyond the reach of Apple last quarter, sending shares tumbling more than 7 percent. But a number of bullish analysts see the stock pullback as a buying opportunity for investors, who can get in at a cheaper price before the launch of new iPhones.
Analyst sentiment is generally high ahead of Apple's third-quarter earnings announcement — due on Tuesday — calling for numbers that could beat both official guidance as well as Wall Street consensus, mostly on the strength of iPhone sales that could near or top 50 million.
Apple is expected to announce a new subscription streaming music service at WWDC next week, but investment bank Piper Jaffray expects that the pay-to-play Spotify competitor will bolster the iPhone ecosystem much more than it will pad Apple's bottom line.
Longtime Apple television proponent Gene Munster threw in the towel on Tuesday, telling investors that he no longer believes the company has a big-screen set in the works, based on the latest rumors.
The iPhone continues to drive growth at Apple, once again propelling the company to a record quarter that has left analysts on Wall Street confident the company's stock will continue to go higher.
Apple is once again expected to have set a new quarterly record in March when it announces earnings this afternoon, with investors on average expecting blockbuster iPhone sales to drive about $56 billion in revenue.
Apple's iPhone 6 and larger iPhone 6 Plus will likely perform better in the June and September quarters than previous iPhone models, analyst Gene Munster believes, which will help to propel shares of the company's stock to new highs.
Analysts on Wall Street came away generally pleased with this week's announcement of Apple Watch launch details, viewing the new platform as a way to extend the company's valuable ecosystem and generate more revenue from high-margin products.
With the total U.S. car market valued at over $500 billion per year, taking just a 10 percent share would represent a new $50 billion revenue opportunity for Apple, according to one analyst.
Piper Jaffray analyst Gene Munster, who has long clamored for an Apple television set, said on Thursday that he believes a revamped Apple TV set-top box could prove to be a centerpiece for the company's fall 2015 product lineup.
While most investors are focused on Apple's annual product cycles and growth, Piper Jaffray sees a new category of shareholders emerging, focused on the power of the platform and a loyal customer base.
Though fewer corporations have indicated they are planning to deploy tablets in 2015, Apple's iOS is still the leading platform for corporations embracing the post-PC era, far ahead of smartphones and tablets running Android or Windows.
Apple's new, larger-screened iPhones are even more popular now than they were when they were announced, according to survey data released Tuesday, boding well for the Cupertino company as it continues to chip away at supply shortages.
According to a recent consumer survey conducted by investment firm Piper Jaffray, potential Apple Watch buyers are in a holding pattern as they await more details from Apple regarding core use cases and a fully fleshed out list of features.
Consumer demand for Apple's latest iPhone 6 and iPhone 6 Plus continues to outstrip supply heading into the end of the December quarter, according to the latest research from store polls conducted by Piper Jaffray.
Piper Jaffray has been tracking availability of the iPhone 6 and iPhone 6 Plus at Apple Stores and continues to see demand outstripping supply, leading the investment firm to raise its price target on AAPL stock on Thursday.
Used and resold iPhone 6 Plus units are still selling at above-cost on sites like eBay, as Apple continues to struggle to keep up with overwhelming demand for its new jumbo-sized 5.5-inch iPhone.
Apple is set to report the results of its September quarter later this afternoon, including the first few weeks of iPhone 6 and iPhone 6 Plus sales, and market watchers generally expect the company will report revenue of around $40 billion for the three-month period.
Investment firm Piper Jaffray thinks the potential market for the upcoming Apple Watch is "huge," but warned investors on Wednesday that it will take time for the wrist-worn smart device to grow into its full potential.
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Roger Fingas
Neil Hughes
AppleInsider Staff
