- Many analysts missed the mark predicting the iPhone shipments in Apple’s (NASDAQ:AAPL) earnings report and have said so in notes to clients.
- Morgan Stanley’s Katy Huberty wrote, “Weaker iPhone supplier results suggested meaningful downside in the June quarter which didn’t come to fruition.”
- Huberty notes that the firm originally forecasted 42M iPhone shipments in the quarter but had since dropped its estimate to 34M. Apple reported 39M units.
- Morgan Stanley (NYSE:MS) reiterates Overweight rating and $200 price target, an 18% upside to yesterday’s close.
- BofAML analyst Wamsi Mohan notes that iPhone demand shifted to the cheaper phones, as evidenced by the lower-than-expected iPhone ASP of $728 (consensus: $742).
- BofAML reiterated its Buy rating and increased its price target from $220 to $225.
- Citi Research analyst Jim Suva agrees with ASP showing strong demand for older iPhones. Suva also notes that the iPhone X “super cycle” won’t happen this year since a 3% Y/Y shipment increase “stops short of investor expectations for a super cycle.”
- Apple shares are up 4.4% to $176.49.
- Previously: Apple +4.4% after Q2 beats on rev, EPS, device shipments, and Services rev (May 1)
- Previously: Apple suppliers pop after Q2 beats (May 1)
- Previously: Apple earnings call: X most popular iPhone, Services has best quarter ever (May 1)
- Now read: Apple Just Keeps Going For Trillion: iPhone X's Paradigm Shift, Revenue Diversification, And 0 Billion In Buybacks
Original article