The tech giant's revenue and profit for the September quarter beat expectations, but all-important iPhone sales missed analyst hopes. The shortfall and lack of forward guidance dragged shares to their lowest in a month and saw as much as $111 billionStill, analysts are mostly optimistic about iPhone performance moving forward. Apple's new iPhone lineup debuted roughly one month later than usual, pushing revenue from the phones' release into the December quarter.
"Management noted double-digit growth in all areas outside of iPhones with the expectation that the demand environment does not change materially due to COVID-19. Although management remains bullish on the iPhone cycle, our estimates for the cycle remain relatively unchanged," the team said.lowered its price target to $135 from $140 following the disappointing iPhone sales reading, still implying a 17% rally from Thursday's close.
Couple the strong start with the roughly 350 million iPhone users estimated to be due for an upgrade, and Apple seems to be"on the cusp of its largest iPhone cycle since iPhone 6 in 2014," Ives said. Investors disappointed by the Thursday report should scoop up shares on any weakness, he added.
Instead of focusing on weaker-than-expected iPhone sales, investors should look at the bigger picture, analyst T. Michael Walkley said.
What the investors say ?