Forget The iPhone 7, Should Apple Bulls Wait Until The iPhone 8 Is Released?
It's a little less than two hours until Apple Inc. (NASDAQ: AAPL) reports its December quarter earnings. The majority of Wall Street is bullish, albeit for different reasons. RBC's Amit Daryanani and Cowen's Tim Arcuri were recently on CNBC discussing their views on the stock.
Daryanani: iPhone 7 Will Push Stock Higher
Daryanani admitted 2016 has been a "hangover" year for Apple thus far. "At the end of the day," though, "the reality is Apple iPhone units will keep growing longer over the next 3 to 5 years, Apple gross margins will go higher and they will monetize more per iOS device."
While iPhone sales growth is no guarantee the stock will rise, Daryanani argued the iPhone 7 cycle will push Apple stock upward. The phone is slated to be released in September.
Arcuri: Apple In Transition, May See More Upside With iPhone 8 Launch
Arcuri had a different tune. "To me, Apple has really entered this period of transition...7 will help...you can re-tap the buyers of the big 6 cycle," he said, but warned that China is a bigger issue. "That [premium smartphone] market's not going to grow that much over the next couple of years," Arcuri added; Apple has "harvested" much of the premium share there.
"I'm not saying Apple won't grow, I'm just saying we're in a period of transition and we're going to have to have the 'next big thing'..."
What could that be? Enter the iPhone 8. Arcuri said the device could be the real game-changer, as consumers will want to switch to OLED displays. Several outlets have reported that the new display type will be used in the next-gen Apple phone, which would be released in 2018 if the current launch schedule is maintained, though nothing is confirmed from the company.
Apple shares are near $100 as of this writing.
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