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.
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.