- Piper, Cantor, and Cowen have each released upbeat notes ahead of Tuesday afternoon's FQ3 report. Apple (NASDAQ:AAPL) has risen to its highest levels since May 26, and is less than $2.50 away from an April 28 high of $134.54. The Nasdaq is up 0.3%.
- Piper's Gene Munster, bullish as ever, forecasts FQ3 EPS of $1.82, revenue of $50B, and iPhone sales of 49M-50M (moderately above consensus). "To put 49 million in perspective, it would imply 39% y/y unit growth vs the Mar-15 quarter of 38% excluding 1 million in channel fill ... This acceleration reflects iPhone gaining share at the high-end of the market, a trend that we expect to continue throughout 2015." He expects 17% iPhone unit growth for the whole of 2015, and flat growth in 2016.
- Cantor's Brian White: "During our Taiwan trip in early June, many of our contacts highlighted weak trend across the smartphone and notebook markets; however, we walked away pleased the tone for iPhones and Macs relative to our expectations ... we are raising our iPhone unit estimate to 48.5 million from 46.25 million ... but lowering our iPad projection to 9.5 million from 10.9 million units ... We are maintaining our Mac shipment forecast at 4.93 million units but increasing our Mac forecast for the September quarter."
- Cowen's Tim Arcuri: "We model iPhone units 50MM (incl. 28MM 6 and 13MM 6+), above Street which seems 48-49MM. We raised ests in June ... but still see upward bias given 1) our latest field work suggesting ongoing cuts to supply chain for iPhone’s high-end competition (e.g. Samsung Galaxy S6); 2) recent Cowen survey data showing increased iPhone penetration growth and meaningful future loyalty at key U.S. operators ... and 3) China sales which remain strong despite demand and stock market uncertainties."
- Wells Fargo's Maynard Um has also hiked his estimates, albeit while maintaining a Market Perform rating. "We think [iPhone] unit upside could be driven by the 25 carriers added in the quarter ... as well as purposely building indirect channel inventory (ended last quarter at the low end of its 5-7 week target) ... We believe gross margin upside in this S-cycle may be offset by increased bill of materials and potential pricing actions at the lower end."
- Separately, research firm Wristly states a survey of Apple Watch owners found 66% were "very satisfied/delighted" with the device, and that 31% were "somewhat satisfied" with it.
- A week ago: SocGen upgrades Apple, hikes FQ3 iPhone estimates