Apple revealed its results for the June quarter. Traders were pleased with the report even though the result was mixed. Now, it's the analysts turn to comment on the tech giant's recent report.
"Consensus and better than feared," Chris Whitmore of Deutsche Bank stated. "Separately, AAPL declined to comment on the widely anticipated iPhone transition which in conjunction with the better margin guidance could raise concerns of a potential iPhone launch delay into October (new product transitions are typically dilutive)."
Amit Daryanani of RBC believed that there were two sides of the story. First, the bulls will focus on three factors as follows: (1) strong iPhone sales, (2) attractive FCF generation, and (3) revenue catalysts. The latter included new carrier relationships, iPad mini refresh, iPad 5, low-end iPhone, and iPhone 5s.
On the other hand, Whitmore noted, "China was a disappointment as Revs contracted 14% Y/Y (vs. +8% Y/Y in the March Q and +67% in the Dec Q) as the economy slows and Apple feels the heat from recent PR problems and lower priced & larger screen Android devices."
Aside from revenue decline in China, bears will tend to focus on the following, too, namely: (1) lack of gross margin expansion, (3) lack of innovation, and (4) lower gross margin trend concerns, added Daryanani.
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