- Despite growing investor concern, we remain comfortable that iPhone X had a favorable start in Dec-17 and the momentum will continue into Mar-18.
- We believe iPhone X reached the important global supply-demand equilibrium in mid-January, suggesting a small amount of Dec-17 iPhone X demand spilled over into Mar-18.
- iPhone ASP’s will be up yy in Dec-17, but the real growth in ASP’s starts in Mar-18.
- While important, Services take a back seat to iPhone this quarter.
- The threat of multiple compression as the risk to AAPL shares when investors shift their focus to FY19 revenue growth expectations of 3%, down from 19% in FY18.
Three key topics on the report. Apple reports Dec-17 results on February 1st. The three key topics in order of importance:
Other less important topics.
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