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
54 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
54 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)
ILuvEggplant Avatar
54 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
54 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
54 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
54 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)

Top Stories

bloodoxygenapplewatch

Apple Watch Series 7 to Gain Breakthrough New Health Feature

Friday March 5, 2021 5:34 am PST by
Apple is reportedly planning to bring a new, first-of-its-kind health technology to the Apple Watch Series 7, in what could be a breakthrough for managing conditions such as diabetes more easily. According to a recent report from ETNews, the Apple Watch Series 7 will feature blood glucose monitoring via a non-invasive optical sensor. Measuring blood glucose levels, also known as blood...
imac pro featured black

Apple Confirms iMac Pro Will Be Discontinued When Supplies Run Out, Recommends 27-Inch iMac

Saturday March 6, 2021 7:33 am PST by
Apple on late Friday evening added a "while supplies last" notice to its iMac Pro product page worldwide, and removed all upgrade options for the computer, leaving only the standard configuration available to order for now. We've since confirmed with Apple that when supplies run out, the iMac Pro will no longer be available whatsoever. Apple says the latest 27-inch iMac introduced in August...
Top Stories 48

Top Stories: iPhone 13 Leaks, OLED iPads and Macs, New AirTags Evidence

Saturday March 6, 2021 6:00 am PST by
iPhone rumors are heating up, with noted analyst Ming-Chi Kuo this week releasing a wide-ranging report outlining his expectations for the iPhone lineup over the next three years. This week also saw rumors about OLED displays potentially coming to iPad and Mac starting next year, increasing signs of AirTags functionality in iOS 14.5 betas, and more, so check out all of the details below! i...
Screen Shot 2021 03 08 at 1

Leaker Suggests Apple Event to Be Held on March 23

Monday March 8, 2021 2:25 am PST by
Apple will hold its first event of the year on March 23, according to information provided by a reputable Chinese leaker (via DuanRui). Apple is expected to launch AirTags, new iPads, and possibly updated AirPods at a spring event, and leaker "Kang" believes that date will be March 23. Initial speculation pointed to an event happening on March 16; however, Bloomberg's Mark Gurman shot down...
apple products refurbished store banner

Class Action Lawsuit Over Apple Providing Refurbished Replacement Devices Proceeding to Trial in August

Friday March 5, 2021 9:53 am PST by
Initially filed in 2016, a class action lawsuit that accuses Apple of violating the Magnusson-Moss Warranty Act, Song-Beverly Consumer Warranty Act, and other U.S. laws by providing customers with refurbished replacement devices is set to proceed to trial August 16, according to a notice this week from law firm Hagens Berman Sobol Shapiro LLP. Apple's repair terms and conditions state that,...
iOS 14

Apple Releases iOS and iPadOS 14.4.1 With Security Fixes

Monday March 8, 2021 10:01 am PST by
Apple today released iOS and iPadOS 14.4.1, minor security updates that comes more than a month after the release of the iOS 14.4 update. The iOS and iPadOS 14.4.1 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. According to Apple's release...
iPhone 13 Notch Feature2

iPhone 13 Rumor Recap: Smaller Notch, Larger Batteries, 120Hz for Pro Models, Improved 5G, Wi-Fi 6E, and More

Friday March 5, 2021 8:20 am PST by
While we are likely at least six months away from Apple unveiling the so-called iPhone 13 lineup, rumors about the devices are starting to accumulate, so we've put together this recap of everything that is expected so far. The upcoming iPhone 13 lineup will consist of the same four models and the same screen sizes as the iPhone 12 lineup, according to reputable analyst Ming-Chi Kuo,...
imac pro while supplies last

iMac Pro No Longer Custom Configurable, Available 'While Supplies Last'

Friday March 5, 2021 10:14 pm PST by
Apple appears to be on the verge of discontinuing the iMac Pro, with the store page for the high-end all-in-one Mac including a "While supplies last" tagline and only the base model with no custom configurations available for purchase. The iMac Pro launched in December 2017, and while there have been a few tweaks to the available configurations over the years, it has received no substantial...
apple mixed reality headset mockup feature

Kuo: Apple to Launch Mixed Reality Headset in Mid 2022 and Augmented Reality Glasses by 2025

Sunday March 7, 2021 8:27 am PST by
Apple plans to release its long-rumored mixed reality headset "in mid-2022," followed by augmented reality glasses by 2025, well-regarded analyst Ming-Chi Kuo said today in a research note with TF International Securities, obtained by MacRumors. "We predict that Apple's MR/AR product roadmap includes three phases: helmet type by 2022, glasses type by 2025, and contact lens type by...
smart contact lens

Kuo: Apple May Release Augmented Reality Contact Lenses in 2030s

Sunday March 7, 2021 9:34 am PST by
In a research note shared with MacRumors, analyst Ming-Chi Kuo today predicted that Apple will release augmented reality "contact lenses" in the 2030s. Kuo said the lenses will bring electronics from the era of "visible computing" to "invisible computing." Mojo Vision smart contact lens Kuo said the lenses are "unlikely to have independent computing power and storage," suggesting that they...