Apple Inc (AAPL) Early June Quarter Estimates May Alarm Investors
By Reissa Su | April 18, 2014 8:17 AM EST
For Apple Inc.'s investors who expect a strong June quarter, Chuck Jones, a prominent writer of Forbes, has lower expectations. Wall Street's predictions for the June quarter is equally disappointing for those hoping for a big Apple comeback.
Apple's iPhone 5Cs phones are displayed on racks bearing the logo of China Mobile, at a mobile phone shop in Beijing December 23, 2013.
Wall Street has estimated Apple's revenues for the June quarter at $38.3 billion. The figure is slightly lower to its previous estimates of $38.7 billion weeks ago. Such guidance by the Street is a far cry from its revenue estimates for the March quarter at $43.6 billion.
For the March quarter, Apple has previously announced a revenue guidance between $42 and $44 billion.
Jones said iPhone sales will decline 23 percent for the June quarter. Apple has sold only 51 million iPhones in December quarter. For the March quarter or Q2 FY 2014, Jones expects the company to have sold 37.4 million iPhones.
Despite China Mobile and NTT DoCoMo's deal with Apple, iPhone sales may not get that much of a boost. Jones said this will be the first time the two carriers will be selling iPhones in the June quarter. Current iPhone sales will be affected because of the buzz surrounding the impending launch of iPhone 6.
Apple remains the biggest smartphone vendor in the U.S. with 41. 3 percent compared to Samsung's 27 percent, according to the recent survey by comScore.
Apple may have seen its lead over Samsung become smaller. But the trend becomes part of the usual ebb and flow of the product cycle.
The market share of Apple in the U.S. smartphone arena is between 40 and 41 percent. The company has held the same range since July 2013. Google's Android OS is leading with a market share between 51.5 and 52.4 percent.
A weak June quarter is also expected for Apple's iPad due to company's change in product release cycle to make it in time for the holidays.
Apple is expected to release its first quarter figures on April 23. Piper Jaffray's price target for Apple is at $640. Munster expects a growth of 5 percent for Apple in year-over-year by June, which is lower compared to the Wall Street's 10 percent projection.
To contact the editor, e-mail:
Most Popular Slideshows
Join the Conversation
- NATO: Russia's Been Conducting Too Many Military Flights Over Europe
- Nokia Lumia 730 v. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Moto X 2014 vs. Motorola DROID Turbo - Specifications, Features And Price Showdown
- Apple iPhone 6 Plus vs Motorola Droid Turbo: Comparsion On Processor, Software And Battery
- Australia Special Forces Await 'Delayed' Iraqi Visas Before Joining ISIS Fight
- ISIS Has Been Equipped With Advanced Anti-Aircraft Missiles