According to a recent report from BofA Securities, Apple Inc. might deviate from its usual pattern and roll out its next iPhone later than anticipated.
As Apple prepares for its upcoming earnings report, the financial world eagerly anticipates the company’s outlook for the current quarter. This outlook typically includes a few weeks’ worth of sales of the newest iPhone models and serves as a window into Apple’s expectations for the next iPhone cycle. BofA analyst Wamsi Mohan suggests that the forthcoming forecast could indicate a delay in the launch timing of the iPhone 15.
Apple’s forecasting has become more challenging to interpret in recent times. Since the onset of the pandemic, the company has refrained from providing specific quantitative financial guidance and has instead chosen to offer vague comments regarding expected performance levels. Nevertheless, Mohan believes that industry evidence points to a possible delay of “a few weeks” in the iPhone 15 launch, which might impact the company’s outlook.
Mohan has incorporated conservative sales projections for the new iPhone 15 models into his overall revenue estimates for the September quarter. His projections currently stand at $87.1 billion, while the FactSet consensus is for $90.3 billion.
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Upcoming iPhone Launch and Revenue Forecast
Last year, Apple introduced the highly anticipated iPhone 14 series to the market, with the iPhone 14, iPhone 14 Pro, and iPhone 14 Pro Max hitting stores on September 16. The iPhone 14 Plus followed shortly after on October 6. At this time, there has been no official response from Apple regarding potential delays for this year’s launch.
According to industry analyst, Mohan, his forecast predicts a decline in revenue compared to the $90.1 billion generated in the September quarter of the previous year. In contrast, consensus expectations suggest a small increase. Mohan points out that Apple is not only facing the possibility of a delayed iPhone launch compared to last year’s timeline but is also dealing with sluggish consumer demand in general.
In his note to clients, Mohan states, “We anticipate a decline in every hardware category compared to the same period last year” for the June quarter. Looking ahead to the September quarter, he adds that the timing of the iPhone launch and the challenging Mac sales comparisons (although iPad sales are expected to be easier) will likely contribute to another decline in product revenues.
Despite his neutral rating on Apple shares, Mohan has increased his price objective from $190 to $210 in his latest report.
