Piper Jaffray's Munster says investors have low expectations for the Apple iPhone 6
Munster believes that Apple's revenue for the March quarter will be on the high side of the company's expectations at $43.5 billion. Apple said that this figure would be between $42 billion and $44 billion. He sees the top line number falling short in the June quarter, but he says that no one will care as they look ahead to Apple's new products to be released in the second half of the year. But this is where Munster's expectations diverge with those of Wall Street investors.
The analyst says that his meetings with Hedge Funds, Mutual Funds and well-heeled investors, have shown him that these big buyers of Apple's stock have low sales expectations for the Apple iPhone 6, and new product categories (like an Apple iWatch). Munster thinks that this thinking is all wrong, but does present a great situation for Apple investors. If the next-gen iPhone, with a possible 4.7 inch screen, takes sales away from large-screened Android models, or the iWatch becomes a hit, Apple's shares should react bullishly. And the worse case scenario, says Munster, is that sales of Apple's next-gen iPhone merely meet expectations, and the stock remains flat.