“Huberty writes that Apple is shifting into a supercycle into calendar 2018, based on the ramp up in iPhone X manufacturing,” Rivas reports. “Although the ramp was slower than expected due to low 3D sensor module yields, that doesn’t mean that consumers will forego the new model all together — she now predicts global iPhone sales of 268 million through calendar 2018, with sales shifting from the fourth quarter to next year.”
Apple Watch demand the biggest positive surprise – potentially doubling revenue by 2019. While iPhone contributes the majority of revenue and profits, Apple Watch is growing in importance, potentially doubling revenue contribution to Apple top-line in the next two years. Twenty-one percent of U.S. survey respondents and 29% of U.S. iPhone owners plan to purchase an Apple Watch in the next year. Additionally, over two-thirds expect to purchase the watch with cellular functionality, putting upward pressure on ASPs. While we recognize that the consideration to purchase an Apple Watch does not necessarily translate to a purchase, we see an upward bias to Street Apple Watch forecasts. — Katy Huberty, Morgan Stanley
Read more in the full article here.
MacDailyNews Take: We agree with Katy on the looming, slightly-delayed supercycle. Vroom, vroom!
[Thanks to MacDailyNews Readers “Fred Mertz” and “Bill D.” for the heads up.]