Market Overview

Analyst: Apple's 'Lame Duck' Quarter Report Doesn't Mean Anything

Related AAPL
The Legacy Of Paul Allen: Philanthropy, Microsoft, Space Exploration, Sports
MedMen CEO Talks 'Blockbuster' PharmaCann Deal With Cramer
Dow Jones Futures: 3 Reasons To Stay In Cash As Bulls, Bears Battle For Stock Market Control (Investor's Business Daily)

Apple Inc. (NASDAQ: AAPL)'s earnings report Tuesday doesn't warrant much attention, at least according to Maxim Group's Nehal Chokshi, who described Apple's June-ending quarter as a "lame duck."

In essence, it doesn't matter what Apple says or does in the quarter, Chokshi explained Monday on CNBC. Apple is clearly at the end of its iPhone 7 product cycle and many consumers who would have otherwise bought an iPhone are waiting for the release of the iPhone 8 to do so.

The same thinking can also be said for whatever guidance Apple offers for the September-ending quarter, the analyst said. Typically when a new iPhone is released it begins selling to the public in the final 10 days of a fiscal quarter so no guidance can accurately measure how big the "real demand" for will be.

"What really will matter is the December quarter guidance ... three months from now," he said. "It is a lame duck quarter in my opinion."

But that doesn't mean that investors don't need to pay attention to what's going on moving forward. Specifically, investors should be paying attention to any developments within Apple's supply chain pertaining to when the phone will be released and true demand.

In the meantime, the analyst isn't fully convinced the iPhone 8 will be delayed. But if it's delayed then the net effect will merely be shifting 10 to 15 million unit sales from the September quarter to the December quarter.

Finally, the analyst's surveys and research into the iPhone market in China reveal that loyal iPhone users "aren't going away" as there is "huge pent up demand" in the country.

Related Links:

Apple Wins A New Bull A Week Before Earnings

If The iPhone 8 Is Delayed, Will Anyone Care?

Latest Ratings for AAPL

Sep 2018NomuraMaintainsNeutralNeutral
Sep 2018JP MorganInitiates Coverage OnOverweight
Sep 2018Bank of AmericaMaintainsBuyBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple China CNBC iPhone iPhone 8 iPhone ChinaAnalyst Color Analyst Ratings Media


Related Articles (AAPL)

View Comments and Join the Discussion!
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Why The 'Game Of Thrones' Leak Is a Big Deal For Fans, But Not The Stock

Pigment Producer, Pharmaceutical Debut In Light IPO Week