Apple faces Wall Street 'panic' over iPhone

Even a $100 billion giveaway to shareholders may not be enough for Apple to calm Wall Street.Apple is expected...

Posted: May 1, 2018 8:32 AM
Updated: May 1, 2018 8:32 AM

Even a $100 billion giveaway to shareholders may not be enough for Apple to calm Wall Street.

Apple is expected to announce plans to return between $100 billion and $150 billion to shareholders when it reports earnings results Tuesday for the first three months of 2018, according to analysts.

The potential share buybacks and dividends follows the passage of the US tax bill late last year, which makes it cheaper for Apple to bring back the more than $250 billion it holds overseas. Apple's CFO previously said the company would provide an update on that money with this quarter's results.

But the massive capital return program could be overshadowed by concerns about Apple's most important product: the iPhone.

Apple stock fell this month after one of its key chip suppliers warned of "continued weak demand." Since then, a series of analysts have slashed their estimates for iPhone shipments.

Daniel Ives, an analyst with GBH Insights, wrote in an investor note last week that Wall Street was in "full panic mode" over iPhone sales ahead of Apple's earnings report.

Related: Amazon made Prime indispensable - here's how

Some analysts blame the $999 iPhone X. The new model, with a full bleed screen and facial recognition, was once viewed by investors as key to driving customers to upgrade their smartphones.

Instead, analysts fearApple missed the mark by launching one redesigned model that is too expensive and two other new devices, the iPhone 8 and 8 Plus, that essentially look the same as older models.

Mark Moskowitz, an analyst with Barclays, wrote in an investor note Monday that the iPhone X's "price point was too high and likely alienated many users."

The consensus estimate among analysts is for Apple to have sold 53 million iPhones for the quarter ending in March, up only slightly from the 50.8 million iPhones sold in the same period a year earlier.

While growth in the number of iPhones sold could be more anemic than investors had hoped, Apple's sales are still expected to increase 15% to about $61 billion, fueled in large part by the higher price of the iPhone X.

Investors will also be looking closely at Apple's forecast for sales in the upcoming quarter. Morgan Stanley analysts think demand for the iPhone X, 8 and 8 Plus to be "weaker ... ahead of September's expected new iPhone launch."

As we get closer to the next big launch event, however, investors will likely stop caring as much about the iPhone X and turn their focus to what comes next.

"The Apple story is intact," Gene Munster, an Apple analyst and managing partner at Loup Ventures, wrote in a note last week. "Investor optimism will rise going into the summer as anticipation grows ahead of 3 new iPhones in the fall."

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 13260

Reported Deaths: 625
CountyConfirmedDeaths
Hinds89324
Lauderdale67855
Madison65421
Scott58910
Neshoba51231
Forrest48034
Jones46713
DeSoto4616
Leake38410
Holmes36523
Rankin3496
Jackson29613
Copiah2784
Attala27014
Lincoln24320
Monroe24224
Leflore24025
Harrison2346
Newton2243
Lamar2194
Yazoo2152
Pearl River20327
Pike19611
Adams18615
Lowndes1607
Noxubee1586
Washington1535
Warren1506
Bolivar14010
Jasper1393
Oktibbeha13410
Smith13110
Covington1271
Chickasaw12612
Clarke12616
Kemper12510
Lafayette1233
Carroll11310
Wayne1090
Marion1088
Lee1045
Clay993
Winston981
Coahoma983
Lawrence901
Hancock8711
Simpson850
Itawamba857
Yalobusha824
Wilkinson829
Montgomery781
Sunflower773
Grenada752
Jefferson Davis712
Union715
Tippah7011
Marshall693
Panola622
Calhoun604
Tate591
Claiborne581
Humphreys537
Amite521
Walthall510
Tunica483
Perry462
Jefferson400
Prentiss383
Stone300
Choctaw292
Webster271
Pontotoc263
Franklin252
Tishomingo250
Quitman240
Tallahatchie241
George191
Alcorn151
Benton140
Greene71
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 14478

Reported Deaths: 551
CountyConfirmedDeaths
Mobile1996109
Jefferson161488
Montgomery118630
Marshall6499
Tuscaloosa50512
Lee49832
Franklin4476
Shelby43319
Tallapoosa39662
Butler34411
Chambers33623
Madison2964
Baldwin2749
Elmore2637
Etowah23610
DeKalb2213
Coffee2001
Walker1981
Dallas1973
Sumter1916
Lowndes18610
Houston1644
Morgan1621
Autauga1593
Calhoun1413
Choctaw1414
Pike1360
Colbert1362
Marengo1336
Hale1293
Russell1280
Lauderdale1282
Randolph1257
Wilcox1187
Marion11310
Bullock1111
Barbour1101
Clarke1022
St. Clair1021
Pickens934
Talladega912
Greene894
Chilton871
Dale830
Cullman760
Limestone740
Jackson692
Covington651
Washington645
Winston620
Macon602
Bibb591
Crenshaw582
Henry562
Blount491
Escambia433
Lawrence420
Coosa331
Geneva330
Cherokee332
Perry310
Monroe282
Clay272
Conecuh251
Lamar200
Cleburne131
Fayette110
Unassigned00
Tupelo
Clear
73° wxIcon
Hi: 87° Lo: 69°
Feels Like: 73°
Columbus
Clear
73° wxIcon
Hi: 89° Lo: 69°
Feels Like: 73°
Oxford
Clear
72° wxIcon
Hi: 85° Lo: 67°
Feels Like: 72°
Starkville
Clear
68° wxIcon
Hi: 86° Lo: 64°
Feels Like: 68°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather