Morgan Stanley: Apple is a good long-term buying opportunity ahead of ‘iPhone 13’

In 2020, there was huge investor buzz about the debut of the iPhone 12 family, the company’s first 5G-capable models. Demand has been strong with iPhone revenues in the March quarter up 65.5% to $47.9 billion. But there’s significantly less buzz about this year’s update, which is viewed by some investors an interim step — what Morgan Stanley analyst Katy Huberty describes as an “s-cycle.”

iPhone 13 and 13 Pro dummy units (Photo: Sonny Dickson)
iPhone 13 and 13 Pro dummy units (Photo: Sonny Dickson)

Eric J. Savitz for Barron’s:

“Investors are concerned about Apple’s fiscal 2022 growth prospects, given the expectation for an iPhone s-cycle and waning cyclical work from home tailwinds,” she writes in a research note Thursday. “We’re not as concerned and see a good long-term buying opportunity.”

Huberty expects that June-quarter results will be better than the Street fears, driven by strong iPhone, Mac, and iPad demand, and that the uptick that started during the pandemic will be durable. But she concedes that fears that revenue could be down double digits in fiscal 2022 won’t be disproved in the June quarter. Huberty still thinks Apple can generate revenue growth in the low teens through fiscal 2023, with EPS growth in the high teens.

MacDailyNews Take: Huberty reiterated her Overweight rating and inched up her Apple price target to $162 from $161.


  1. Market ripping to the upside today. AAPL? Doing nothing. Investors are totally uninterested in Apple. I guess incinerating cash is not a way to get people to want to own the company. Perhaps distributing the profits to the owners might work. Tim Cook would rather incinerate cash.

  2. Mr. T, could you please display some simple mathematics showing how the reduction of shares, as a result of share buy-backs, results in an “incineration of cash?”

    In case you may have a special inclination towards conflation, like one such Mac-board member, please go beyond money spent that YOU see no appreciable gain. Please substantiate in REAL terms.

    I personally am not a fan of SBBs, but your repeated “incineration” claim, w/o support is getting tiring.

    1. Yeah, like buy-backs—or not—let’s just say Buffett has gone lu-lu and, for some unknown reason, decided to recently incinerate more than 6.5 billion of his company’s cash.

  3. Now it’s the second day of the market ripping higher. AAPL does nothing. Investors see through the emptiness of Tim Cook’s incineration of cash. Why buy into that nonsense when there are plenty of stocks that return profits to their shareholders.

    The market is blasting to new highs while Apple sits and does nothing. Apple is being left behind. All because TIm Cook wants to incinerate cash.

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