Rumors about the iPhone 7 abound, and between those rumors and just the typical excitement about Apple’s newest smartphones, consumers are anxiously waiting for this year’s release. A new survey indicates that 44% of those who participated intend to purchase an iPhone 7 when it comes out later this year.
Goldman Sachs reports details of iPhone 7 survey
According to CNBC, Goldman Sachs analysts reiterated their Conviction Buy rating on Apple stock based on the results of their iPhone 7 survey. They also cited the iPhone maker’s expected earnings beat for the March quarter. The results are set to be announced later this month.
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The Goldman team said the high apparent demand for the iPhone 7 suggests that the replacement cycle is shortening and that one-third of iPhone upgrades will likely come from users who have one that’s less than a year old. Additionally, they said that such high interest in the iPhone 7 suggests that the rate of consumers switching from other platforms is increasing with about 25% of iPhone 7 sales potentially going to switchers. They note that such a high switch rate suggests that Apple will keep gaining share in the smartphone industry.
Among the many rumors we’ve heard about the iPhone 7 are that it will be slimmer than the iPhone 6s, have a better battery life, and possible ditch the 3.5mm headphone jack. Apple is said to be planning for a huge iPhone 7 cycle this year.
Apple may start seeing upward revisions
Goldman Sachs analysts also believe Wall Street will start steadily revising its earnings estimates for Apple upward. They expect a “beat and raise quarter” from the iPhone maker with revenue of $54.4 billion, against the consensus of $52 billion and guidance of between $50 billion and $53 billion. They’re looking for earnings of $2.17 per share, which again is ahead of consensus at $2 per share. They said iPhone unit numbers are driving their above-consensus estimates as they project 53.6 million units for the March quarter, compared to the consensus estimate of 50 million.
Apple shares climbed by as much as 1.3% to $110.44 in afternoon trades today. The company is scheduled to release the earnings results from its March quarter on April 25 after closing bell.