After Apple Inc. (NASDAQ:AAPL) declared its much awaited third-quarter results, the Street was anxious to know as to when they would get the first glimpse of iPhone 6. During an interview on CNBC’s “Fast Money,” Gene Munster, Piper Jaffray Managing Director, tried to interpret the expected iPhone 6 launch and more about the earnings.
First of all, Munster appeared pleased and contented with Apple Inc.’s (NASDAQ:AAPL) gross margins, which according to him was a bigger takeaway. He explained that iPhone as a percentage of revenue went from 57% to 52%, which is not a big gap, but still drove the company’s margins. He said nine months back when the September quarter was about to begin; investors were “petrified that Apple Inc.’s (NASDAQ:AAPL) gross margin was going to perpetually decline. What’s ended up happening is they ended up beating it. So, I think that’s a strength in there. It’s going to give investors some confidence over the next few quarters.” Munster expects the company’s gross margins to be choppy towards December guidelines as most of the new products will launch during that time.
Since there are a series of reports indicating that Apple Inc.’s (NASDAQ:AAPL) iPhone 6 launch might be delayed, Munster said that if the crux of the guidelines are to be deciphered, which are $2 billion lower than the Street estimates, the iPhone 6 launch is expected on the last Friday in September. The fresh time frame estimates differ from the earlier expectations of a second to last week launch, he said, adding, “so, we are splitting here. It doesn’t change the story, but that’s what going with the guidelines.”
Meanwhile, Munster is affirmative about the future growth prospects of Apple Inc. (NASDAQ:AAPL) in China, where the company reported nearly 50% growth in its iPhone sales. “You look at China Mobile Ltd. (ADR) (NYSE:CHL), 230 million 3G subs, they sold about 7 million iPhones. And we’re still just scratching the surface,” said Munster and thus sees a very competitive and easy room for Apple Inc. (NASDAQ:AAPL) to grow because of China Mobile Ltd. (ADR) (NYSE:CHL).