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Morgan Stanley Analyst Katy Huberty: Apple’s Revenue is About to Explode

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According to a chart created by Morgan Stanley Analyst Katy Huberty, Apple is about to see a major increase in revenue. 

The chart is based on her reading of Apple’s latest quarterly filing with the SEC. Huberty says that the increase in revenue will be due to major product launches later this year. 

Huberty’s predictions are based on Apple’s off-balance sheet commitments, which have directly correlated with revenue in the past. Off-balance sheet commitments are investments in components that are involved in mass products, like the iPhone or iPad.

The analyst also notes that Apple’s total spending in certain areas, like component purchases, advertising, and manufacturing equipment, has increased 46 percent year-over-year.

The growth of the total commitments is 46% on a year-over-year basis. On a quarter-over-quarter basis, commitments were up 36%, which is the highest sequential growth for a June quarter since 2007 when Apple started selling the iPhone, says Huberty.

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Huberty notes that Apple is willing to spend the extra money on these products that are involved in mass production. The products she is primarily talking about are the iPhone 6 and iWatch. Apple will reportedly launch their next-generation iPhone in the fall alongside the iWatch. 

The iPhone 6 is rumoured to include a 4.7-inch screen with multiple camera improvements. The long-rumoured health and fitness-focused iWatch is set to integrate with Health, Apple’s iPhone app for tracking your daily health and fitness goals, and HealthKit, the platform behind health that lets developers integrate their own products with the Health app. 

[via Business Insider]

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  • Chrome262

    that iPhone 6 in black looks better then the ones in white, with those dam antenna breaks .

  • Yeah, I agree. My wife is excited to receive the gold iPhone 5s hand-me-down soon.

  • neo905

    Wow. Revenues will explode following a product refresh in September followed by a holiday season like every other year since 2007. No way!

  • neo905

    The new iPhone looks a lot like the HTC One M7. If the leaks are accurate. Same exact screen size as well. No front speakers though.

  • rting

    I would be very careful here. Why? First of all, if Morgan Stanley – or any professional analyst – announces anything, the market may have moved already. Secondly, we are near the 2012 all time highs at around $100 (post split). Thirdly, the price level at $97.77 is an ABC 3 swings move projection where usually the height of A to B is equal to the height of B to C. See: https://www.tradingview.com/e/e2zK08zJ/# … we should be taking profit on Apple.

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