Some of the technology sector’s big 2023 winners have continued their ascents into this year, but not shares of Apple Inc. Shares of the iPhone maker were down 3% in Monday trading and they’re off about 10% to start 2024. But an Evercore ISI analyst sees “a host of tailwinds stacking up in [Apple’s] favor,” even as the consumer-electronics giant has lost some of its shine on Wall Street in the wake of a disappointing March-quarter outlook that implied revenue would decline.
“While we understand the disappointment around [the March-quarter guidance] we think iPhone units are largely flat excluding some [one-time] dynamics,” Evercore’s Amit Daryanani wrote in a note to clients. Additionally, Apple’s
AAPL,
-2.44%
margin story looks well intact. The company “continues to see gross margins work higher” and expects March-quarter margins to lie in the 46% to 47% range, whereas analysts had been modeling 45.5% gross margins. That sort of talk “is clearly dampening the impact of revenue miss to the bottom line” for the March quarter, according to Daryanani. See also: EU’s record Apple antitrust fine is just the start of a Big Tech regulatory crackdown this year Furthermore, he’s excited about some Apple developments on the horizon. In his view, commentary around the company’s recently launched Vision Pro headset — which starts at $3,499 — has been “incrementally better,” and interest among enterprises has been “sizable.” Apple’s management has also teased that it will make an announcement on generative artificial intelligence …
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“While we understand the disappointment around [the March-quarter guidance] we think iPhone units are largely flat excluding some [one-time] dynamics,” Evercore’s Amit Daryanani wrote in a note to clients. Additionally, Apple’s
AAPL,
-2.44%
margin story looks well intact. The company “continues to see gross margins work higher” and expects March-quarter margins to lie in the 46% to 47% range, whereas analysts had been modeling 45.5% gross margins. That sort of talk “is clearly dampening the impact of revenue miss to the bottom line” for the March quarter, according to Daryanani. See also: EU’s record Apple antitrust fine is just the start of a Big Tech regulatory crackdown this year Furthermore, he’s excited about some Apple developments on the horizon. In his view, commentary around the company’s recently launched Vision Pro headset — which starts at $3,499 — has been “incrementally better,” and interest among enterprises has been “sizable.” Apple’s management has also teased that it will make an announcement on generative artificial intelligence …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]