In the fourth quarter, a world record was set by Apple Inc. (NASDAQ:AAPL) for quarterly profits beyond expectations. Sales figures were smashed for the new iPhone 6. Now, some analysts are of the belief that the Q1 earnings of Apple would continue the trend.
But now there is BTIG’s Walter Piecyk, an analyst who admits that he knows that he would ‘throw cold water on a great party’. A closer look has been taken by Piecyk at Q1 Financials for AT&T and Verizon for possible signals about the sales of Apple iPhone during the same time frame. He has found results that are discouraging, especially for them who believe that the expectations would be blown by Apple for this quarter.
Piecyk stated that the reports of the first quarter have not been very strong indicators for Apple. He further added that “To be clear, we are not trying to make an ‘Apple Will Miss The Quarter’ call. There are plenty of factors that could offset AT&T and Verizon’s weakness, like T-Mobile and China, but we thought it was important to highlight the slowing smartphone sales at two of Apple’s largest customers.”
Specifically upgrade rates are very flat over the years at Verizon. The rates were up at AT&T and this resulted in the sales of smartphones being 2.3 million lower in comparison with those carriers. Ultimately, Piecyk has written that around 50 million sales of iPhone is being forecasted during Q1 and this is below the consensus estimate of 55 million. This leads to an estimated share of $1.89.