Analyst cuts Apple price target, says ‘iPhone 7’ doesn’t look like a must-have upgrade

“Apple iPhone sales might not rise this year, as the company’s next-generation handset is looking like an incremental upgrade that won’t excite customers, Barclays analyst Mark Moskowitz said in a research report Wednesday,” Patrick Seitz reports for Investor’s Business Daily. “Moskowitz cut his price target on Apple stock to 131 from 142 but reiterated his overweight rating. Apple stock was up a fraction, near 108, in afternoon trading on the stock market today.”

“The analyst also lowered his iPhone unit sales estimates for the March and June quarters to 50.7 million and 46.3 million, respectively, down from 51.3 million and 49 million,” Seitz reports. “Moskowitz also questioned iPhone sales prospects for the September and December quarters, based on reports about the upcoming iPhone 7. ‘Our research indicates iPhone 7 prototypes do not suggest any must-have form factor changes,’ Moskowitz said.”

“For the calendar year, he now expects iPhone unit sales to decline 1.8% vs. his previous forecast for 2.6% growth,” Seitz reports. “On the plus side, Apple reportedly plans to skip its traditional S model iPhone next year and jump straight to a redesigned smartphone in the iPhone 8, Moskowitz said.”

Read more in the full article here.

MacDailyNews Take: His “research.” IOW: Surfing Weibo.

Maybank: Apple’s June quarter iPhone units may miss big – April 18, 2016
Why the 2017 iPhone will be made of Liquidmetal – April 18, 2016
Ming-Chi Kuo: Apple’s 2017 iPhone to feature new ‘all glass’ enclosure – April 18, 2016
75 percent of teens say their next phone will be an iPhone – April 13, 2016
Mossberg: Apple’s iPhone 7 had better be spectacular – March 23, 2016


  1. Actionable research notes begin their task of trying to generate client transactions, buy or sell (they don’t care which), so long as the financial institutions make their transaction fees. They absolutely hate investors just sitting patiently long in stocks like AAPL!

    1. ““Apple iPhone sales might not rise this year, as the company’s next-generation handset is looking like an incremental upgrade that won’t excite customers, ”

      Cause Samsung with its new thing of the month is doing so well to excite customers. Right??? I am sure glad I do not pay those people to give me stock advice. LOL

  2. I’m not saying it means anything because as far as I’m concerned if the stock goes up to $125 I’d be happy. What is annoying is how an analyst can make a statement such as this when he doesn’t know what Apple is going to offer in the way of an iPhone 7. He’s only giving an opinion that has no facts behind it. They do this a lot with Apple and it’s really quite unfair to come to such conclusions without seeing an actual product. I doubt he even asked anyone whether they consider any iPhone upgrade is a must-have upgrade. Why aren’t the analysts doing this nonsense to other companies’ products?

  3. I laughed my ass off when I read “looking like an incremental upgrade that won’t excite customers”. This is exactly what computer manufacturers, automobile manufacturers, TV manufacturers, et al have been feeding us for decades. That doesn’t seem to be a problem in valuing those companies, all of which have higher PEs than Apple without the size, historic growth rates, gross margins or cash generation capabilities of Apple.

    Just like Nikkei’s misguided attempt to depress AAPL, with its half assed “research note” detailing what Apple has been doing for years (seasonality of sales) as something unique this year, Barclay’s is comparing the RUMORED iPhone 7 to the iPhone 6S, when nearly all upgraders will come from owners of the iPhone 5S and older iPhones (60% of iPhone installed base).

    Even if there were no functionality improvements, getting a new battery after 2+ years of usage is a significant reason to upgrade from an iPhone 5S or older iPhone (Apple only warrants 50% of original capacity after 2 years of usage). Throw in Apple Pay, Touch ID improvements, Force Touch, Live Photos, Health Kit, and cameras that rival stand alone models, and you have an iPhone that is super compelling.

    I know, I upgraded my iPhone 5 to the iPhone SE and the difference is startling.

    Here’s the part Barclay’s doesn’t share with you. iPhone unit sales growth rate on a 2 year upgrade cycle averages >60% 2YO2Y. Average 3YO3Y upgrade cycle for the same period is >145%.

    Further the iPhone 7 does not address the very large segment of iPhone users still using a 4″ iPhone, nor does it address the impact that the iPhone SE price reduction will have on that market segment PLUS emerging markets like India.

    The ONLY thing holding back iPhone unit sales today is an unfavorable foreign exchange rate that prices todays iPhones significantly higher than comparable iPhones sold during 2014. The good news is that those unfavorable foreign exchange rates will be largely mitigated by the end of this year.

  4. I jumped onboard the yearly upgrade program. No reason, I just wanted to do it.

    The anal-cyst wants people to sell ahead of a outstanding earnings report Monday when more institutional investors will get back into AAPL as the price rises.

  5. “Analyst cuts Apple price target, says ‘iPhone 7’ doesn’t look like a must-have upgrade”
    How does he even know? No one even knows what iphone 7 looks like yet. He must be a criminal stock manipulator. Hey SEC, get him.

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