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
102 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
102 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
102 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
102 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
102 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
102 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

New Things Your iPhone Can Do in iOS 18

10 New Things Your iPhone Can Do in iOS 18.2

Thursday October 31, 2024 9:42 am PDT by
Apple is set to release iOS 18.2 in December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls incoming as well. ...
best early black friday deals

The Best Early Black Friday Apple Deals

Friday November 1, 2024 8:21 am PDT by
We're officially in the month of Black Friday, which will take place on Friday, November 29 in 2024. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
M4 Pro on Blue

M4 Pro Chip Benchmark Results Reveal an Extremely Impressive Performance Feat

Thursday October 31, 2024 7:06 pm PDT by
The first Geekbench 6 benchmark results for the M4 Pro chip surfaced today. Impressively, the results that are available so far show that the highest-end M4 Pro chip is faster than the highest-end M2 Ultra chip in terms of peak multi-core CPU performance. Here is a comparison of the results: Mac mini with M4 Pro (14-core CPU): 22,094 multi-core score (average of 11 results) Mac Studio...
Apple iPhone SE 4 5G Modem 1

iPhone SE 4 First to Get Apple-Designed 5G Modem, iPhone 17 Pro to Add Custom Wi-Fi 7 Chip

Friday November 1, 2024 4:04 am PDT by
The iPhone SE 4 that's set to come out early next year is expected to debut Apple's first in-house 5G modem, according to Jeff Pu, an analyst who covers companies within Apple's supply chain. In a research note this week with Hong Kong-based investment firm Haitong International Securities, Pu said Apple is expected to roll out its custom-made 5G modem starting with the next-generation...
ios 18 2 chatgpt plus

iOS 18.2 Beta 2 Shows Siri ChatGPT Limit, Offers 'Plus' Upgrade Option

Monday November 4, 2024 10:54 am PST by
With the second beta of iOS 18.2 that's available for developers today, Apple has further fleshed out the ChatGPT integration that's available with Siri. In the Settings app, there's now a section that shows the ChatGPT daily limit, and offers an option to upgrade to the paid ChatGPT Plus plan. The beta includes an Advanced Capabilities section with a "Daily Limit" reading that shows up as...
M3 Pro Max vs M4 Pro Max Feature

Here's How Much Faster M4 Pro/Max Are for Graphics vs. M3 Pro/Max

Friday November 1, 2024 8:04 am PDT by
Apple's new M4 Pro and M4 Max chips are impressively fast in terms of CPU performance, topping the M2 Ultra, but what about graphics performance? The first Geekbench 6 results for GPU performance are now available for the M4 Pro and M4 Max, and the Metal scores reveal some impressive year-over-year gains. Based on the Metal scores that are available so far, the M4 Pro and M4 Max are up to...
imac video apple feature

What to Expect From Apple This November

Friday November 1, 2024 9:40 am PDT by
After a busy October in which Apple announced new Macs and Apple Intelligence launched, the calendar has now turned to November. Below, we outline what to expect from Apple this month as the slower-but-still-busy holiday season approaches. After seeding the first betas of iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2 with additional Apple Intelligence features last month, Apple will likely...