Barclays estimates that Apple will report a record-breaking $76.6 billion in revenue when it announces its earnings results for the first quarter of fiscal 2017 on January 31. Apple reported revenue of $75.9 billion in the year-ago quarter, and offers guidance of $76 billion to $78 billion for this quarter.

Apple-Bonds
UBS estimates Apple will report revenue of $77.8 billion next week, which falls on the higher end of Apple's guidance. UBS analyst Steven Milunovich maintained a "buy" rating for Apple stock with a target price of $127—compared to $120 currently—in a research noted issued to investors today.

Meanwhile, Barclays analyst Mark Moskowitz lowered his price target for Apple's stock from $119 to $117 in a research note issued to investors today.

Moskowitz does not expect "meaningful upside potential" for Apple in 2017. He believes customers increasingly "mixing down" by opting for the iPhone 6s in favor of the iPhone 7 could weigh on Apple, while he is also concerned about China and India failing to emerge as growth catalysts in the next 12 months.

He said the so-called "iPhone 8" will potentially have "no must-have advanced features," making him skeptical of a meaningful growth rebound for Apple in the second half of this year. He added that smartphones have become "more than good enough" to serve the needs of most users over multiple years or until the device breaks.

While not likely to have a similar replacement cycle of PCs (i.e., 5-7 years), we think the smartphone market and thereby the iPhone franchise stand to face incremental headwinds this year and next, as the smartphone useful life extends to 3 to 4 years from 2 to 3 years previously. As a result, the prospect of revolutionary technology incorporated into the next iPhone (iPhone 8) is not likely to counter the expanding useful life of smartphones in general.

Specifically, he said OLED display options, bezel or bezel-less designs, an embedded Home button, and wireless charging are commonly mentioned in its discussions with industry participants about the next iPhone, but that the new features might not be able to reassert that "must have" element for customers.

Wireless charging in particular may be limited by the need to be close to a charging base. Moskowitz does not expect wireless charging over greater distances to develop until 2018-2019 at the earliest. He acknowledges that Apple could be making strides in this space by partnering with firms like Energous, but he maintains his view.

Nevertheless, he said Apple has a "sticky ecosystem" and a large cash balance that provide decent support for long-term investors.

Barclays predicted Apple has long-term growth opportunities related to India, its growing services category, the enterprise market, artificial intelligence, and possibly the cloud, but it does not expect those potential "what's next?" opportunities to emerge as "major needle movers" for the company over the next 12 months.

Top Rated Comments

Andres Cantu Avatar
111 months ago
Apple wants long-term growth opportunities, then don't upset your customers by not updating desktop Macs.
Score: 7 Votes (Like | Disagree)
djcerla Avatar
111 months ago
The iPhone 8 will simply blow past the most optimistic estimates.

Apple is severely undervalued, that's why BlackRock raised their already huge stake in the company.

One year from now, people will be wondering why the hell they didn't buck up the truck at this unbelievable valuation.
Score: 7 Votes (Like | Disagree)
Born Again Avatar
111 months ago
The iPhone 8 will simply blow past the most optimistic estimates.

Apple is severely undervalued, that's why BlackRock raised their already huge stake in the company.

One year from now, people will be wondering why the hell they didn't buck up the truck at this unbelievable valuation.
Thanks Tim. You have great things coming down the pipeline right?
Score: 4 Votes (Like | Disagree)
Lankyman Avatar
111 months ago
iPhone 8, unless it has a Samsung battery level flaw, will keep Apple's profits stable. If it gets good press and reviews it will grow profits.

Laptop and Desktop computers aren't enough of Apples income that by ignoring them for another year will significantly impact profit. It will continue to alienate some of Apples longstanding fans however, and will probably require some actual response, whether that means actually updating the line or selling it off. The success of updating or selling depends on how significant the update is or how competent the company that buys the line is. But none of these possibilities will happen this year with computers.
Sadly the iPhone is Apple's only focus now, it's fast becoming a one trick pony.
Score: 3 Votes (Like | Disagree)
Breaking Good Avatar
111 months ago
Laptop and Desktop computers aren't enough of Apples income that by ignoring them for another year will significantly impact profit. It will continue to alienate some of Apples longstanding fans however, and will probably require some actual response, whether that means actually updating the line or selling it off. The success of updating or selling depends on how significant the update is or how competent the company that buys the line is. But none of these possibilities will happen this year with computers.
It would not surprise me to see Apple spin off its laptop/desktop business into a separate company. I think customers would actually benefit from this.

Apple will have a very hard time growing this business while maintaining its same margins on its other lines of business. Plus, operating as a separate company would mean it wouldn't have to sell hundreds of millions of units. So it could do small runs of 17" laptops of Mac Pros.
Score: 2 Votes (Like | Disagree)
ValO Avatar
111 months ago
As far as I'm concerned, I already know the iPhone 8 will be a must buy. And everyone I talk to says the same - they cannot wait to get their hands on the new iPhones as soon as they launch.
Yes, but i am afraid that all the rumors are not for the 2017 iphones, but later models.
We' ll probably get an iphone pro this year, with perhaps a clickable lower chin/bezel that acts as an homebutton and all of the lower bezel part could be a fingerprint reader, and we' ll get a curved oled display. It will have a glass back and front with stainless steel frame sandwiched in between. It will have inductive but not wireless capabilities. It will be an apple s7/note 7 basically, nothing really new, just the design with better specs.
Nothing ground braking... and they' ll cost a ton, be limited in availability.

I feel a bit of dissappointment coming in september.
Score: 2 Votes (Like | Disagree)

Popular Stories

iOS 26 on Three iPhones

Here's When to Expect the iOS 26 Public Beta

Tuesday July 15, 2025 11:07 am PDT by
Apple previously announced that a public beta of iOS 26 would be available in July, and now a more specific timeframe has surfaced. Bloomberg's Mark Gurman today said that Apple's public betas should be released on or around Wednesday, July 23. In other words, expect the public betas of iOS 26, iPadOS 26, macOS 26, and more to be available at some point next week. Apple will be releasing...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
iPhone 17 Colors

All 15 New iPhone 17 and iPhone 17 Pro Colors Revealed in Latest Leak

Wednesday July 16, 2025 6:50 am PDT by
We may finally have a definitive list of all color options for the iPhone 17 series, ahead of the devices launching in September. MacRumors concept In a report for Macworld today, Filipe Espósito said he obtained an "internal document" that allegedly reveals all of the color options for the upcoming iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max models. The report includes ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
apple tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
Apple Hornsby

Apple Store Near Sydney Permanently Closing Later This Year

Monday July 14, 2025 6:14 pm PDT by
Apple today said its store at the Westfield Hornsby shopping mall, in Hornsby, Australia, will be permanently closing in October. Apple Hornsby In a statement shared with Australian tech news website EFTM (via Reddit), Apple said that it has decided not to renew its lease at Westfield Hornsby. Apple said all affected retail employees will be given the opportunity to work at Apple's nearby...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...