Apple (AAPL) Captured 106% of Smartphone Industry Profits in Q3 - Canaccord Genuity

November 21, 2016 1:10 PM EST
Get Alerts AAPL Hot Sheet
Price: $119.96 -0.03%

Rating Summary:
    60 Buy, 10 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
Trade AAPL Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

In a note earlier on Apple (NASDAQ: AAPL), Canaccord Genuity analyst Michael Walkley noted the iPhone maker captured 106% of industry profits during Q3, up from 75% in Q2 due to Samsung’s significant profit decline following the Galaxy Note 7 recall.

"We believe the iPhone installed base will exceed 570M exiting C2016, and this impressive installed base should drive strong future iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns," the analyst said.

They capture of 106% of premium smartphone profits contributed to the losses at LG, Microsoft, Lenovo, Blackberry and HTC during the quarter.

"While we anticipate a stronger upgrade cycle in C2018 with the 10-year anniversary iPhone 8, iPhone 7 demand is sold and should bridge the gap until a new form factor iPhone is likely released in C2017," Walkley said. "We anticipate steady iPhone 7 sales should help Apple return to growth in Q1/F’17, and we maintain our BUY rating and $140 price target."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $110.06 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Earnings, Canaccord Genuity

Add Your Comment