Apple Inc. (NASDAQ:AAPL) signaled that the wait for new products could finally end with the unveiling of new products such as iPhone 6 and iWatch this fall. RBC Capital Markets managing director Amit Daryanani, expects the unveiling of a new product to occur sometime in September.
Daryanani in an interview on CNBC also noted a change in the company’s third quarter guidance, which will not be flat this time around. Apple Inc. (NASDAQ:AAPL) expects its September sales to be up by 3% in contrast to the previous years where it provided a flat estimate, according to Daryanani. He said:
“The September quarter guidance this time implies sales up about 3% sequentially this is different to the historical practice when they suggested a flat September. That might suggest modestly ahead of plans for the iPhone launch or a new product launch altogether.”
Apple Inc. (NASDAQ:AAPL) has already suggested a busy fall this time around implying that the company is planning to launch a new product in the market backed by the fact that the company has already suggested a transition cost. The launch of a new iPhone and probably a iWatch could take Apple’s margin even higher in the third quarter as the stock continues to show signs of breaking the $100 barrier. Daryanani said:
“We obviously haven’t factored in some of the new products like an iWatch exclusive model. I’d say the gross margin dynamics they had this quarter should be sustained and could take EPS numbers much higher and could lead the stock to higher levels than the $95 and $100 we have.”
The unveiling of an iWatch this fall could be a game changer for Apple Inc. (NASDAQ:AAPL) if it could get everything right in terms of customers’ expectations. Daryanani expects the iWatch to be a hit in the market, able to command sales of more than $10 billion, only if Apple Inc. (NASDAQ:AAPL) is able to find a way that the device is completely different from the iPhone ecosystem.