JP Morgan believes investors are primed for softer AAPL earnings results in Q1 2021, but believes that Mac and Services could still drive upside.
In a note to investors seen by AppleInsider, lead analyst Samik Chatterjee writes that the setup heading into Q1 2021 earnings is “dramatically different than the last one,” since the focus on near-term earnings drivers has moderated after the busy holiday season.
Specifically, iPhone builds are slowing down, led primarily by softening smartphone shipments in China and slowing momentum of 5G-equipped iPhone 12 and iPhone 12 Pro sales. Relative to sell-side consensus, Chatterjee believes investors are primed for softer results.
However, the analyst still expects modest upside to investor expectations. He cites strong growth in Services and the current momentum in Mac and iPad shipments as the primary driver, despite concerns that work from home trends will wear off. JP Morgan is tracking iPhone revenue in line with expectations.
Read more at AppleInsider.com