50 Million Mark: 'The Big Issue' Ahead Of Apple's Earnings
Daniel Ives, FBR Capital Markets analyst, was on CNBC Monday to discuss the importance of third quarter results that Apple Inc. (NASDAQ: AAPL) is going to release Tuesday and what investors are expecting from the company.
"Investors on the Street really been waiting for a new iPad refresh which we believe comes out later this year," Ives began. "The big issue going into Apple earnings is that five-oh number, the 50: Can they have that iPhone shipment above 50 million? China has been a little bit of overhang, but I think you will start to see more optimism hanging to tomorrow night that you are going to start to see those iPhone legs on iPhone 6."
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He continued, "China we believe is really the high octane fuel here and ultimately , I think as technically sort of breaks above highs with a good print, you go into next year with the watch, with Apple Pay with all these other growth areas that's the third leg of this stool and that's really what investors want to see."
The 'Prove Me Quarter'
Ives highlighted how important the third quarter results are going to be for Apple, saying, This has sort of been the stock in the mud period since the developer conference. This is going to be really a prove-me quarter and ultimately that's how we get to that trillion dollar market-cap.
"And it really comes down to can they show that China can continue to be that fuel? Can iPhone 6 continue to have legs? And then you got 6s coming out later this year which could really give you the growth into next year."
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