Analyst Gene (Oh Lily!) Munster of Piper Jaffray says Apple’s release of an 8GB iPhone 5c, and its rerelease of the iPad 4 to replace the aging iPad 2 will have only a minor effect on its bottom line.
AppleInsider reports that Jaffray sees the two minor changes to Apple’s device lineup having a “slight positive” benefit for Apple over the next two quarters. Jaffray, in a note to investors, say he sees the release of the 8GB iPhone 5c as “unlikely to drive more significant upside.”
Munster’s main concern for Apple is that Wall Street expects to see the company report $38.7 billion in revenue for the June quarter. Munster believes the consensus estimate for a 10% year-over-year growth is too high.
“Given that there are no meaningful changes to the company’s product line-up or identifiable seasonal trends heading into June, we believe it is unlikely we see the significant acceleration the Street is currently expecting,” Munster wrote.
While the analyst said he believes the street’s June estimates will eventually come down before Apple reports results for the quarter, he doesn’t expect it to have much of an effect on the company’s stock price, as Apple will be hyping its fall product launches by then.
Apple debuted the 8GB iPhone 5c on Tuesday in select markets around the world, including China, the U.K., France, Germany and Australia. It also discontinued its three-year-old iPad 2, and replaced it at the $399 price point with a 16GB fourth-generation iPad with Retina display.
Piper Jaffray maintains its “overweight” rating for AAPL stock, with a price target of $640.