50 Million Mark: 'The Big Issue Going Into Apple's Earnings'

Daniel Ives, FBR Capital Markets, was on CNBC Monday to discuss the importance of third-quarter results that Apple Inc. AAPL is going to release tomorrow and what investors are expecting from the company.


The Expectations


"Investors in 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 5 'O' 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."


He continued, "China, we believe, is really the high octane fuel here and ultimately , I think, as [...] 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 stone, that's really what [as] investors [we] 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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