Cupertino, California-based Apple Campus 2, is expected to post fiscal second-quarter earnings of $2.15 a share, along with revenue growth of 22.5 percent to $55.91 billion.
Deutsche Bank's Apple Analysis
Scribner doesn't see the Apple Watch launch as a catalyst and said the high-end smartphone market is now saturated.
Growth in the market is getting driven by cheap phones, particularly in Asia, according to Scribner.
Other Perspectives
Apple launched a $90 billion buyback authorization a year ago.
However, strong market share gains in China will get overshadowed going forward by a 16 percent decline in smartphone sales in developed markets this year, according to Maxim Group's Nehal Chokshi, who launched coverage recently with a Hold rating and $144 target.
As for Apple Watch, Cleveland Research's Benjamin J. Bollin thinks the product – as part of the "other" category – will contribute to about 6 percent of 2015 revenue.
"We're feeling marginally better" about the potential for the watch to contribute more in 2016, Bollin said.
FBR's Daniel H. Ives thinks differently, touting that everyone's focus on Apple's hardware might be missing the point.
"The secret sauce is software" for profit growth in coming years, according to Ives, who launched coverage recently with an Outperform rating and $185 target.
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