In a note to investors, Cowen and Company analyst Timothy Arcuri predicted a significant increase in sales for Apple products. The note which was sent to investors revealed that Apple will sell 41.5 million units of iPhone in the ongoing June 2017 quarter. If this forecast turns out to be true, then it would be an increase from the 40.4 million iPhone units the Cupertino-based company shipped in the same quarter in 2016.
iPhone sales to rise in the current quarter?
Although Arcuri forecasts the rise in the sales of iPhone units, he also notes that the sell-through of the smartphones to the buyers could be flat, or could also go down slightly due to a 4 million unit channel inventory drawdown, which also took place in the 2016 June quarter.
Nevertheless, it seems that Apple investors have immense faith in the company as they suggest that it will earn $44.9 billion in revenue in the June quarter. If the investors’ prediction comes true, it will again be another increase for the company, compared to the $42.4 billion revenue it generated in the same period in 2016.
It is suspected that the high hopes investors have from Apple stem from anticipation for the upcoming iPhone 8 launch. The much-anticipated iPhone 8 is rumored to debut sometime later this fall. Speculations are rife that the company has gone all out for its tenth-anniversary handset. However, the investors are not expecting much out of the June quarter although one may get to see a rise in the iPad sales thanks to the launch of the new models quite recently, it is the September quarter everyone is waiting for.
Super-cycle for the next quarter?
Market experts are predicting a so-called “supercycle” for the upcoming iPhone, due to the anticipated demand courtesy the new form factor. Rumors are abuzz that the iPhone 8 will not be featuring the traditional design, which can be dated back to iPhone 6 in 2015. The new smartphone is hinted to come with a full frontal OLED display, along with a new chassis.
Although reports state that the iPhone 8 could see a September launch, Arcuri predicts that he does not expect to see the smartphone hit the markets before the December 2017 quarter. As far as the analyst is concerned, the timing of the iPhone 8’s launch is irrelevant as he expects the device to be a “powder keg” for Apple’s stock price and sales. Whether the next-gen handset from the company can propel the company's sales and revenue further remains to be seen.
