Samsung's Problems Don't Necessarily Quell Apple Demand Concerns

According to JPMorgan's Rod Hall, Apple is expected to report fourth-quarter revenue of $46 billion (cons: $47 billion), GAAP gross margin of 37.8 percent (guid: 37.5–38.5 percent, cons: 37.9 percent), GAAP operating expenditure of $6.1 billion (guid: $6.05–$6.15 billion, cons: $6.2 billion), GAAP EBIT margin of 25 percent (cons: 25 percent) and GAAP earnings per share of $1.62 (cons: $1.65).

The analyst is also guiding Apple to show that it shipped 45 million iPhone units in the fourth quarter and 72 million in the first fiscal quarter of next year. This includes approximately 3 million iPhone units in incremental sales to account for the discontinuation of Samsung's device.

Related Link: Oppenheimer Not Jumping On The Apple Bandwagon Ahead Of Q4 Earnings

As such, Apple's market share in the $400-plus smartphone category will "reach slightly more" than its usual 60 percent share.

Looking past the quarter, Hall expects Apple to host a special media event on Thursday and introduce a new lineup of Mac products. In addition, the company may also launch a 4K Apple TV, which won't be material to its financials but represents a good starting point to acquire a content company.

Shares of Apple remain Overweight rated with an unchanged $107 price target.

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