Technology

Apple (AAPL) is expected to unveil its first generative artificial intelligence-enabled software upgrade at the Worldwide Developers Conference in June, Morgan Stanley said in a note Friday. “We believe that new [large language model]-enabled software features can help accelerate iPhone replacement cycles, especially given the component requirements to run AI in the cloud and on-device,” Morgan Stanley said. Morgan Stanley said “every 0.25 year decrease in iPhone replacement cycles” is anticipated to drive an upside of roughly 6% to its fiscal 2025 iPhone unit and revenue forecasts. The firm said it sees the software upgrade, and the expected launch of iPhone 16 in September, “as upside catalysts to help reaccelerate growth” in fiscal 2025. Morgan Stanley said its fiscal 2025 revenue and EPS estimates for Apple are 1% to 4% higher than consensus and “remain largely unchanged” after the company released its fiscal Q1 results Thursday. The firm maintained its […]

By Eric J. Savitz The biggest bombshell in Apple’s December quarter earnings report came on the company’s conference call, when CFO Luca Maestri provided a hugely disappointing forecast for the March quarter. Management’s guidance, implying overall quarterly revenue will fall 5% from a year earlier to about $90 billion, with a drop of nearly 10% in iPhone sales, sent the stock down as much as 3.5% in after-hours trading. Shares opened Friday slightly below $180, the lowest level in nearly three months. But Apple shares have since staged an impressive turnaround, briefly moving into the green before slipping lower again. Wall Street seems to have adopted a view of the quarter laid out by Morgan Stanley analyst Erik Woodring, who described the ugly forecast as a “clearing event” that will allow investors to refocus on the company’s June Worldwide Developers Conference. That is when he thinks Apple will finally disclose

JPMorgan analyst Samik Chatterjee maintains Apple (NASDAQ:AAPL) with a Overweight and lowers the price target from $225 to $215.

Apple (AAPL) shares are likely to trade down after its fiscal Q1 earnings report as estimates for fiscal 2024 and 2025 are expected to be revised, UBS said in a report sent Friday. The firm projects H1 iPhone shipments of 128 million units, compared with the project of about 128.5 million units a year earlier. The investment firm expects roughly 4% revenue growth in fiscal 2024 and 3% growth in fiscal 2025, compared to the consensus of 4% and 6%, respectively. The “iPhone still comprises roughly 50% of total revenue dampening growth of services that should account for 24% of the mix,” UBS analysts said. The iPhone sales are taking a hit from competition in China, it said. “At an average [average selling price] of roughly $900, lost share in China could pressure iPhone revenue by slightly more than $7 billion, a 3.5% iPhone revenue headwind and [around] 1.9% total