Analyst: Apple will possibly weaken in 2017
The predicted results for the current Christmas quarter can reach Apple conveniently. At the beginning of 2017, however, the forecasts so far may be missing. Also to the upcoming iPhone 8, Brean Capital analyst Ananda Baruah has only cautious expectations.
Analyst Ananda Baruah from Brean Capital has certified the iPhone manufacturer that he can easily reach the forecast results for the Christmas quarter. However, with the start of 2017, he is expecting declining sales, which remain somewhat below expectations.
For the first fiscal quarter of Apple – the important Christmas quarter – Baruah is increasing sales of 77 to 78 million iPhones, equivalent to sales of $ 77 billion and a profit of $ 3.11 per share. This is not far from Wall Street’s previous consensus, with sales of $ 77 billion and a profit of $ 3.23 per share. When it comes to profit, the analyst also leaves room for leeway, as the most profitable iPhone will provide a larger portion of sales. He thinks one of 60 to 70 per cent increased iPhone share for conceivable.
However, for the coming quarter, which ends in March, the Brean Capital analyst fears weaker results than the ones so far. It goes from 52 to 54 million sold iPhones, while it were 56 million before. This could correspond to sales of $ 55 billion and a profit of $ 2.20 per share.
As a reason for the subdued outlook for the March quarter, Baruah argues that Apple is not likely to benefit from the hoped-for scope of Samsung’s Note-7 debacle. It might bring Apple only one million additional iPhone sales, although this is of course difficult to estimate. He remains somewhat skeptical about future sales prospects in China.
While the economic press has a greater focus on a possible weakness Apple in the coming year, Apple Insider reads from the forecasts above all, that Apple could set another record in this Christmas quarter. But this publication also takes note of the analyst’s sluggish expectations for the forthcoming iPhone 8, he fears a lack of truly convincing features and considers it quite possible that it does not bring the much-anticipated new momentum for Apple.
However, the Brean Capital analyst is not one of the fundamental Apple skeptics. His recommendation for Apple is “Buy” with a price target of 135 dollars. The current price of the iPhone manufacturer is 116 dollars.
In the fourth quarter of fiscal, which ended in September, Apple’s net profit shrank by 19 percent to about 9 billion dollars compared to the same period last year. Sales of $ 46.85 billion remained just below the forecast.
Translated from Source