Wall Street may underestimate the potential impact of new 5G-compatible iPhones on Apple earnings, according to Morgan Stanley. It is expected that the company will unveil the first generation of 5G iPhones at a special virtual only event next Tuesday 13 October.
Eric J. Savitz for Barron’s:
On Thursday, [Morgan Stanley analyst Katy Huberty] writes in a research note that an analysis of the iPhone product mix and pricing suggests that the Wall Street consensus estimates for both devices and average prices for Apple’s fiscal year in September 2021 are too low. She will increase her income and profit estimates in 2021 by 2%. Huberty now sees accounting 2021 earnings of $ 4.07 a share, which is 20 cents above the Street Consensus.
Huberty also raised the estimate for 2021 iPhone shipments to 220 million units, from 218 million. She holds her overweight rating and price target of $ 130 on the stock.
“We expect this fall’s launch to be the most significant iPhone event in many years,” she writes. Like other analysts, she expects four new models – 5.4-inch iPhone 12 mini, 6.1-inch iPhone 12, 6.1-inch iPhone 12 Pro and 6.7-inch iPhone Pro Max, which will have the largest screen ever and iPhone.
MacDailyNews Take: Yep.
Yes, more than ever, the world needs Apple’s annual iPhone cycle. And we bet the world gets it too. With “iPhone 5G”, the perennial mother of all iPhone Super Cycles will finally be here this fall! – MacDailyNews, March 27, 2020