Apple's FQ4 Earnings: Anticipating Growth in iPhone and Services
- JP Morgan analyst Samik Chatterjee has set an Overweight rating on Apple Inc with a price target of $265, driven by positive projections for the iPhone cycle and strong growth in Services revenues.
- Chatterjee anticipates solid iPhone shipments in the September quarter, despite a slower than expected start for iPhone 16 sales, projecting a total of 245 million annual iPhone shipments by 2025.
- Overall, while expectations for December quarter revenue may fall short, analyst optimism hinges on Apple's ongoing transformation and AI integration prospects.
On October 29, 2024, in the U.S., JP Morgan analyst Samik Chatterjee provided insights into Apple Inc's performance amid the current earnings season. He assigned an Overweight rating to the company with a price target of $265, emphasizing an optimistic view on the ongoing iPhone cycle and the growth potential of Services. This assessment recognizes Apple's strategic shift towards Services and its enduring technological leadership in the market. Chatterjee's analysis highlights expectations for strong iPhone shipments during the September quarter, largely attributed to an effective ramp-up of the iPhone 16 supply chain. Despite initial slower sales compared to previous models, indications of improvement have emerged, supporting the forecast of 245 million iPhone shipments anticipated in 2025. However, he maintains a cautious stance regarding revenue projections for the December quarter, potentially trailing consensus estimates due to lower year-over-year volume. The anticipated guidance is consistent with Apple's historical approach of conservative outlooks during this period. Notably, the introduction of AI features within upcoming iPhones may serve as a catalyst for renewed consumer interest, further enhancing Apple’s positioning in the technology landscape. This evolution suggests a broader industry trend driven by AI adoption. Overall, Chatterjee's analysis underscores both the challenges and opportunities present for Apple in the coming months, as it navigates through a transformative phase and anticipates continued demand growth across its product lines.