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BofA expects Covid iPad sales growth to fall by Investing.com

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© Reuters. Bank of America expects Apple (AAPL) iPad sales growth to decline from Covid-Forward

Written by Sinad Karahimetovic

Bank of America analysts reiterated a neutral assessment and a $160 share price target for Apple (NASDAQ:) stock.

Company analysts have analyzed the “distorting effect” that the Covid-19 pandemic has had on demand for tablets. They estimate that approximately 42 million “surplus” iPads were sold in the 18 months through the end of June 2022.

Apple sold a total of 154 million iPads during that period and the “excess” portion was partly a result of new demand, but also because customers replaced their devices faster to support remote work/study trends.

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“Excess purchases represent approximately 27% of iPads sold during that time period. In our view, a quarter of the increased sales are associated with faster replacements, which we expect will result in annual declines in iPad units shipped in the C22 and C23. With That said, as some new customers started replacing iPads purchased during the early stages of covid, we expect the C24 to see a rebound in units shipped above presale levels of the mid-40 million.”

BofA analysts revised the iPad 22-F24 revenue estimates to include the results of the new analysis. They now sit without consensus and calculate that the iPad revenue cuts offset the EPS effect of -$0.01/-$0.06/-$0.07 for F22/F23/F24, respectively.

However, they expect the iPad to continue gaining market share as Apple introduces new features and expands its customer base in the enterprise and education segment. However, while Apple will gain a new share, it will likely see limited growth in its installed base.

“While the device continues to attract a high percentage of new users (about 50% of buyers in any quarter, even pre-pandemic were new to the device), replacement rates remain muted. We see this as a function of category in structural deterioration,” the analysts added. “.

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Elon Musk of Tesla congratulates Big Rival Ford

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Elon Musk and Tesla changed the way consumers think and look.

They have pushed the entire auto industry to switch to electric vehicles and make the technology the future of the sector, which is crucial to the economy.

Today, nearly every automaker—vintage automakers, start-ups, luxury brands, sports car manufacturers—offers an electric or hybrid model. Groups are investing billions of dollars to develop electric vehicles.

Consumers are also following developments, since their demand for these green vehicles is rising sharply even as cars remain expensive and the number of charging stations continues to lag. Charging still takes a long time, and electric vehicle owners have to plan their trips according to the geography of charging stations, which is a particular problem.

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Financials and Materials Drive TSX Higher By Reuters

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© Reuters. FILE PHOTO: Screen showing the price of a major Canadian stock index, the S&P/TSX Composite Index of the Toronto Stock Exchange, as it rose to a record high in Toronto, Ontario, Canada on January 7, 2021. REUTERS/Chris Helgren

(Reuters) – The main Canadian stock index rose on Thursday, supported by financial stocks and commodity-related commodities, while Canadian manufacturing data for November rose from the previous month.

At 09:33 AM ET (1433 GMT), the S&P/TSX Composite Index of the Toronto Stock Exchange rose 104.98 points, or 0.51%, at 20,558.24, approaching a six-month high.

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The Fed’s measure of inflation slowed in October, supporting the dovish Powell

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The Federal ReserveUS preferred scale inflation Data released on Thursday slowed back October, adding more support to President Jerome Powell’s signal of a near-term interest rate hike after his closely watched speech yesterday in Washington.

The essence of September PCE The price index is up 5% from a year ago, down from the 5.1% pace recorded in September and basically in line with Street expectations of 5%. The Bureau of Economic Analysis reported that the core index rose 0.2% in the month, a significant drop from September that fell within analysts’ expectations.



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