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
96 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
96 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
96 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
96 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
96 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
96 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 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
General Apps Messages

iMessage Down for Some Users [Update: Service Restored]

Thursday May 16, 2024 3:00 pm PDT by
The iMessage service that Apple users to send messages to one another appears to be down for some users, and messages are failing to go out or are taking an extra long time to send. There are numerous reports about the issue on social networks and a spike of outage reports on Down Detector, but Apple's System Status page is not yet reporting an outage. Update: Apple's status page says...
CarPlay Sound Recognition

Apple Previews Three New CarPlay Features Coming With iOS 18

Wednesday May 15, 2024 9:18 am PDT by
Apple today previewed new accessibility features coming with iOS 18 later this year, and this includes some new options for CarPlay. Apple highlighted three new features coming to CarPlay: Voice Control: This feature will allow users to navigate CarPlay and control apps with just their voice. Color Filters: This feature will make the CarPlay interface visually easier to use for...
maxresdefault

Hands-On With the New M4 OLED iPad Pro

Wednesday May 15, 2024 10:40 am PDT by
Today is the official launch day of the new iPad Pro models, and these updated tablets mark the biggest feature and design refresh that we've seen for the iPad Pro in several years. We picked up one of the new 13-inch models to check out everything new. Subscribe to the MacRumors YouTube channel for more videos. When it comes to design, Apple is still offering 11-inch and 13-inch size options ...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...