Raymond James Analyst Tavis McCourt is speculating that Apple Inc. may not launch the iPhone 7 in 2016. The U.S. tech giant usually reveals its smartphone in early September with sales following one week later. According to the analyst, the iPhone 7 may arrive earlier next year, Barrons reported. Additionally, McCourt lowered earnings estimates on Apple, which will report its quarterly earnings report later this month.
Apple is expected to unveil the iPhone 7 and iPhone 7 Plus in September. Rumors suggesting that the new iPhone will be similar to the iPhone 6s, but it may be a little thinner.
The rumor mill is suggesting Apple will release four new models. In addition to the iPhone 7 and iPhone 7 Plus, a third new model will be unveiled at the company’s September event. The fourth model will arrive later this year. The report were saying that the third model’s camera technology will be dissimilar to what Apple offer in the iPhone 7 and iPhone 7 Plus. Mobipicker reported that Apple will launch three iPhone 7 models, including the iPhone 7, iPhone 7 Plus, and iPhone 7 Pro.
According to the reports, Apple is also planning to introduce completely re-designed smartphones in 2017 to celebrate the 10th anniversary of iPhones.
What Analysts Thinking About Apple
Shares of Apple Inc. are down 9.91% in 2016. The stock has declined 11.03% over the last three months and 23.54% over the past 12 months.
In addition to McCourt, Citigroup also lowered estimates on Apple earlier this week, citing weaker-than-expected demand tied to longer replacement cycles, according to a report from Market Watch.
McCourt trimmed his EPS to $1.41 from $1.56. For 2017. He, however, raised his iPhone unit estimate to 231 million units from 216 million. On the stock, the analyst reiterated a market perform rating, saying it remains “very inexpensive” compared with competitors.
The average rating on the stock is equivalent to a buy. The median 12-month price target is $122.18, according to Market Watch.
On June 27, Apple’s stock price fell to a 1-month low, at $92.04 per share. The UK’s exit of the EU caused the company’s share price to fall as the results were reported, lowering business and investor confidence. Since the 27th of June, their share price has been gaining, although it still is around $30-$40 lower than its peak, back in May 2015 (more than $130 per share.)
Buy Apple Stock With iPhone 8 ‘Super Cycle’ in Mind
Last month, Credit Suisse said that the iPhone 8 is likely to overshadow the company’s upcoming iPhone 7. In a note to clients, the firm’s analyst Kulbinder Garcha said that the iPhone 7 will prove to be a modest upgrade. He believes that the iPhone 8, however, would have significant innovations, and investor should buy Apple for the iPhone 8 “super cycle,” which could drive the company’s stock price more than 50% higher.
Garcha reiterated an outperform rating and $150 price target on Apple Inc.’s stock, which is down more than 23 in the past 12 months. At the same time, the analyst cut 2017 EPS estimate by 5% to $9.67 a share because of disappointing iPhone 7.
Stronger demand for the iPhone 8 would result in higher selling prices, according to the analyst, who estimates that average selling price for the iPhone 8 will be $667, compared to $653 for the iPhone 7.