With Expectations for Sept 9th Event Low, Apple Could Surprise to the Upside - Wells Fargo

Echoing other recent analyst commentary, Wells Fargo analyst Maynard Um said expectations for Apple (NASDAQ: AAPL) September 9th event are low. This could allow the company to surprise to the upside.

Um sees the company unveiling two iPhones with similar form factors to the iPhone 6/6+. He expects the biggest internal hardware addition to be Force Touch alongside memory, CPU, and camera upgrades and capacity to remain unchanged at 16GB, 64GB, and 128GB. On the memory, Um said this is a positive as there was some speculation the company might raise the low end from 16GB to 32GB.

In addition to the iPhone, they expect a refreshed iPad Mini as well as potentially a larger screen 12.9 inch iPad Pro and updated Apple TV. On the TV, they don't see streaming TV services available until 2016.

Um said the larger venue Apple chose also potentially suggests that we could see demos on a larger scale--perhaps Siri-enabled home automation or Carplay.

"We note low expectations for the event, even from Apple bulls and think any potential surprise could be to the upside," Um said.

The firm reiterated an Outperform rating as they see a more attractive risk/reward following the recent sell-off.

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 $110.37 yesterday.

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