Deutsche Bank Sees Modest Apple (AAPL) iPhone Upside, But Says Market Share 'Peaked'; Maintains Hold

Deutsche Bank maintained a Hold rating on Apple (NASDAQ: AAPL) with a price target of $125. Based on checks, analyst Sherri Scribner thinks the iPhone will have a good quarter, but she sees the Apple Watch as a "wildcard."

"Based on our checks, we believe iPhone will have another good quarter, and we expect iPhone shipments to be 50M in C2Q-15. Despite the strength of the iPhone 6 rollout, we remain concerned that Apple’s current overall market share and share of the $400-plus ASP segment has peaked. Also, with the overall smartphone market slowing, we expect slower growth rates for Apple. Given strong growth this cycle, we expect iPhone’s growth to underperform the overall market’s growth as we anniversary the iPhone 6 launch in C4Q-15." said Scribner.

"This quarter marks the first quarter of Watch sales. After tight supply early on, continued international expansion and recent comments from Apple lead us to believe that supply and demand has stabilized. We find it a bit unusual that Apple has not provided an update on sales as typically, Apple provides detail on units shipped for large and successful product launches. We are modeling F3Q-15 units of 3.9M and 18M for CY-15 and believe investors will be disappointed if Apple does not disclose numbers for this new product," added the analyst.

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 $126.44 yesterday.

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