Timothy Arcuri from UBS is seeing some short-term struggles for Apple and the iPhone between production problems and temporary demand decreases, but sees restoration of iPhone production and sales in 2020.
UBS has cut its price target for Apple by $15 to $225 after revising its estimates, citing reported supply chain cuts and potentially tough market conditions for iPhone XR forecasts caused by the dollar appreciating against currencies in other key markets.
After the close of business on Tuesday, Apple will report the results for what is seasonally its slowest quarter of the year, with Apple and industry watchers predicting around $44 billion in revenue. But all eyes are on Apple's guidance for the fourth fiscal quarter, to see how confident the company is about the "iPhone 8" launch.
Apple's second fiscal quarter of 2017 was largely a mixed bag, in the eyes of investors, who saw some positives but were also disappointed by some results. Analysts reacting to the quarterly results were largely indifferent on the short term, remaining focused on growth of the company's Services business and an anticipated "iPhone 8" super-cycle.
Apple is expected to introduce a number of new technologies in this year's anticipated flagship "iPhone 8," but it is the efforts to integrate the Touch ID fingerprint sensor into the handset's display that are apparently causing the company the most trouble.
Estimates for Apple on Wall Street remain "way too low," in the eyes of analyst Timothy Arcuri, who believes that the combination of a new iPhone form factor with an aging install base could create a "powder keg" for shares of the company.
Led by the blockbuster debut of the iPhone 7 series, Apple exceeded Wall Street's expectations with its holiday quarter, sending shares of the company's stock higher and prompting analysts to revise their price targets upward.
New details on this year's anticipated "iPhone 7s" upgrade and "iPhone 8" redesign have emerged, with a Wall Street analyst claiming the iPhone's 10th anniversary will be celebrated with a new jumbo-sized model featuring a 5.8-inch OLED "fixed flex" screen.
Analysts are starting to chime in on what they are expecting to see in Apple's forthcoming earnings report, with the latest prediction increasing both revenue and earnings per share significantly over earlier estimates.
Apple's June quarter earnings came in slightly higher than expected this week, propelling shares higher by more than 6 percent back over the $100 threshold. Analysts were generally pleased by Apple's results — here's a roundup of their responses, as collected by AppleInsider.
Tuesday's earnings report from Apple is expected by Wall Street analysts to be essentially a non-event — nothing serious enough to make the stock price jump, but also nothing negative enough to see shares slide significantly.
As Apple's iPhone install base continues to grow, so too do the number of customers who are likely to upgrade to a new handset, representing what one investment firm has dubbed a "powder keg" that could propel shares of AAPL higher.
Analysts on Wall Street were pushing optimism after Apple's disappointing fiscal 2016 second quarter earnings, saying they expect that the company will continue to innovate and will return to growth over the next year.
Cowen and Company upgraded its outlook on AAPL stock to "outperform" on Wednesday with a $135 price target, telling investors it believes Apple will return to growth with this fall's "iPhone 7" and beyond.
Investment firm Cowen and Company has a bullish outlook for Apple's new iPad Pro, citing performance benchmarks that show the device is capable of replacing many mainstream laptops running an Intel processor.