Merrill Lynch is bullish on Apple, says talk of iPhone sales peaking in China is bogus

Merrill Lynch is bullish on Apple, says talk of iPhone sales peaking in China is bogus
Ever wonder why you can't make a penny in the stock market? That is because the so-called experts don't have a clue what is going on. Earlier today, we told you that Piper Jaffray analyst Gene Munster (no stranger to our avid readers) had cut his forecast for Apple's fiscal Q2 iPhone sales. Munster now expects that Apple will report sales of 55 million iPhones for the three months ended in March, down from his original estimate of 62.5 million handset sales in the period. If Munster is right, for the first time since the iPhone launched in 2007, the company would be reporting a year-over-year quarterly decline in the number of  iPhone units sold.

Merrill Lynch, on the other hand, says talk of iPhone sales peaking in China is bogus. Merrill analyst Wamsi Mohan raised his rating on Apple's shares today from "neutral" to "buy". The analyst told investors in a memo that demand for the iPhone remains strong in China based on a survey taken by the brokerage firm. That flies in the face of a weak Chinese economy and other reports stating that Apple has cut component orders by 30% for its newest iPhone models.

Now here is where it gets confusing for many investors. Munster is cutting his expectations of iPhone sales for 2016, and doesn't see year-over-year growth returning until the Apple iPhone 7 is launched next September. Still, he happens to agree with Merrill's Mohan that Apple's stock should be bought. Munster calls Apple the top stock of 2016, while Mohan has a target of $130 for the shares. That would be a 30% gain from Apple's closing price tonight of $99.96.



source:  Forbes

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22 Comments

1. AlikMalix unregistered

Bad news about Apple - the voltures are eating it up, but Good news about Apple and its crickets...

15. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well between the two both agree the stock will go up and have it at a buy so no one is arguing their stance on the stock. Low sales expectations sorry the coming year are already factored into the price and therefore, this is old news. They're expecting Apple to bounce back with the iPhone 7 but it remains to be seen how consumer perception changes when the media starts throwing the sales decline in their faces when it gets announced.

16. vincelongman

Posts: 5677; Member since: Feb 10, 2013

So like most tech companies news then

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Why is it bad news? You ever sold 55M of anything? Money is money. No company can keep a sustained sale of a single product forever. They will always be up and down. But hey, they gained year over year sales every quarter every year until now. The only companies that can brag on such is Google/Android, where google has seen year over year rise of users since 2010. Android usage numbers increase bu huge margins even sometimes within the same year. iPod Touch sales have been falling for the longest because I believe iPhone and iPad Mini sales cannibalized them. It doesn't make since to get a small Touch when you can get a mini for $299 or less. 4" display vs 7" display for the same price...which makes more sense? Then the iPad sales have been falling for 2 years in a row. Considering the iPad has remain basically unchanged from 2010 other than revisions to the case. The only new feature it has gained finally is split-screen considering you buy the latest model only. Then the iPhone has also basically remain unchanged. Also I think the sales this time was due to the iOS9 issues. Considering people who have older iPhones now have almost stopped working with iOS9, people are pissed and arent goign to buy the new model...well at least some especially those suing over it. It was a nice run. Apple played their last Ace by finally making the iPhone bigger. The iPhone can now only just catchup to the spec and feature department at this point because smartphone have reached the plateau of capability.

2. ibend

Posts: 6747; Member since: Sep 30, 2014

did anyone come here to read stock news? if yes, then PA should write more article like this for NON-APPLE smartphone, tq

3. darkkjedii

Posts: 30964; Member since: Feb 05, 2011

If you don't like it, you could always start your own site, and post only the news you want. Beggars can't be choosy.

6. Deca-core

Posts: 75; Member since: Nov 20, 2015

I always wondered why others keep on bashing you.you're an iDiot afterall.

12. Tizo101

Posts: 524; Member since: Jun 05, 2015

Yeah he likes acting like he's not a troll.

17. iampun33t

Posts: 134; Member since: Apr 17, 2013

Guess what.. I just did..!! Now I just come here to see what new pathetic thing has been shared by PA to get more views..!!! This is the only site which will even post something on the plastic that you peel off, when unwrapping your new phone..!! Even more so, if it's from Apple..!!

4. keithtae

Posts: 564; Member since: Mar 25, 2015

Ok.... it's Alan F again.

9. phonefanboy

Posts: 49; Member since: Oct 06, 2011

Alan always quick to defend apple. Should go work for the verge or Gizmodo

13. Tizo101

Posts: 524; Member since: Jun 05, 2015

he always had something to post (as an article) and I promise he will find a way to talk about Apple, but that's just phonearena

5. Subie

Posts: 2350; Member since: Aug 01, 2015

Even if Apple sells less phones then last year their profits will still be astronomical! So they'll still be winners no matter what the haters say.

7. mixedfish

Posts: 1551; Member since: Nov 17, 2013

How much profit Apple makes is irrelevant to the stock prices. Their profits need to meet or beat the estimations otherwise a simple profit will still mean a downgrade and a dip. Given this is Merrill Lynch we're talking about, I'd take a bet they give no s**ts about profits, only growth.

8. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Their P/E ratio is still one of the healthiest in the business, so they will be fine. It's better than Google's or Microsoft's by a long shot, but not better than Samsung Electronics, who is severely undervalued. That's helped by the stock losing 21% of its value in the last 13 months, but still, 7-ish is nothing to sneeze at for a P/E.

10. Nathillien unregistered

Might not peak in China but it peaked world wide a year ago.

11. AlikMalix unregistered

As an apple fan - I hear this from analysts and Apple hate-bandwagon every year... And we all know there's a slow time for Apple every year. Albeit I'd admit - this year the slow moment seemed to come early - but Apple still sold more iDevices this year than before. For the record, I would be excited to see what Apple will do if it was in samsung shoes last year and year before that and the year before that. Or HTC, or Sony or...

14. pureviewuser

Posts: 501; Member since: Nov 11, 2012

This was bound to happen IMO all companies peak and then lose a bit others more in Apples case they won't lose a lot they have a very good business strategy and will still make huge profits.I'm not an apple fan I do not like their products however that doesn't mean they're bad on the contrary my wife's iPhone is a very capable device and I do not hate Apple or Android .

18. iampun33t

Posts: 134; Member since: Apr 17, 2013

And why do people care about Apple shares rising or falling..???!!! If Apple then why not others..?? Next PA should post 50 New Articles on each of the Tech/Mobile manufacturers share rising/falling..

19. keekai05

Posts: 116; Member since: Mar 31, 2015

People rant about PA writing this article for Apple when the homepage is flooded with Android news. Why do you guys care about Apple news and bash shamelessly when you have your place in the homepage that you can discuss about your Android specs?

24. coldspring22

Posts: 349; Member since: Feb 28, 2015

On the contrary, this is "Iphoneareana" with blatant bias toward Apple, where one new model of iphone (iphone 6S) gets top front page coverage for more than 2 solid months, where as any other android flagsihp gets barely any coverage at all, and it quickly disappears. Not to mention blatant false reporting on things like iphone 6S battery life, when professional testing organizatoin like ConsumerReports have already shown iphone 6S battery life to be inferior to iphone 6. They should really change their name to Iphonearena.com to be more honest where they are coming from.

21. Dude2014

Posts: 448; Member since: Feb 12, 2014

Baited article

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