Several of the Big Tech brigade delivered their latest financial statements last week but they were just a taster ahead of this week’s main course. Following the end of trading on Thursday (Aug 3), Apple (NASADQ:AAPL) will take its turn to announce its fiscal third quarter report.
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Going by recent Asia supply chain checks, Wedbush analyst Daniel Ives expects Apple will post “at least in-line June quarter iPhone revenues with upside likely.”
“We believe iPhone units based on a clear uptick in demand around the key China region this quarter could show some upside despite the choppy macro as higher ASPs and overall upgrade activity on iPhone Pro 14 carry the day for Cook & Co,” the 5-star analyst expounded.
What’s rather intriguing about the strong iPhone 14 demand, is that it is late in the iPhone cycle, given the iPhone 15 is expected to launch this fall.
That is not the only piece of the Apple puzzle expected to put in a strong showing. Ives thinks Services revenue should “be on the upswing into FY24.” Combined, Apple should then deliver headline numbers that will “at least meet the Street’s expectations with the path higher for the stock with this new tech bull market now underway.”
As for the September quarter, with the main event of the year being the anniversary iPhone 15 launch (slated for around mid-September), Ives is expecting a “relatively conservative” guide.
With the handing over of the baton from one iPhone to another about to take place, Ives sees this handoff as being a “steadier transition than some other peak to valley iPhone cycles of the past.” Additionally, Ives is also encouraged by a “noteworthy trend” of rising ASPs (average selling prices) that are moving toward $900/$925 per iPhone.
All told, looking forward to “another flex the muscles moment” from Apple, Ives maintains an Outperform (i.e., Buy) rating on the shares, backed by a $220 price target. The implication for investors? Upside of 12% from current levels. (To watch Ives’ track record, click here)
Most on the Street remain in Apple’s corner. The stock claims a Strong Buy consensus rating, based on 24 Buys vs. 7 Holds. However, taking into account the big year-to-date gains (up by 57%), the $200.61 average target suggests the shares will remain rangebound for a while. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
