Analyst: Apple HomePod pre-orders doing well

Rosenblatt’s Jun Zhang forecasts 6 million units produced this year.

In a note to clients that landed in my inbox Friday, Zhang also offers a round-up of what else Apple might have in the pipeline:

With earnings behind us, focus is quickly shifting toward the next round of product launches later this year. Based on our industry work we offer our view on the line up, which is relatively in line with current media speculation.

Summarizing:

  • Red iPhone 8 Plus: Zhang forecasts 3 million units shipped in the first half of the year—assuming, he adds, Apple can get paint to stick to the iPhone 8’s metal frame.
  • Low-end Home Pod: In the $150-200 range. Zhang thinks demand could exceed 10 million units in 2018. Meanwhile, he says, first-generation HomePod pre-orders at $349 are “doing well,” with 6 million slated for production this year.
  • Upgraded iPhone SE: Coming in the June quarter, Zhang predicts, with upgraded internals (newer processor and RF module). “This move would also help digest iPhone 7 component inventory,” he adds.
  • iPad Pro: Zhang expects Apple to integrate 3D sensing features and a notch design in the next iPad Pro, which, he says, hasn’t had “a meaningful industrial design overhaul” in several years.
  • Apple Pencil: Zhang anticipates new Apple pencil the works on both the iPad Pro and on Apple’s “expected” 6.5-inch iPhone.

Zhang maintains his Buy rating and $180 price target. 

My take: It’s not clear to me where he’s pulling those numbers from.

See also: No shortage of Apple HomePods

3 Comments

  1. John Kirk said:

    This will be another typical Apple peripheral product:

    1) Roundly criticized.

    2) The people who own it will love it.

    3) Roundly criticized.

    4) Sales will slowly grow until it grosses upwards of 5 billion dollars a year, equal to the revenue of a Fortune 100 company.

    5) Roundly criticized.

    6) Although it’s only sold to Apple customers, it will dominate its market.

    7) Roundly criticized.

    Did I mention that it will be roundly criticized?

    0
    February 9, 2018
    • Walley Francis said:

      Just look at it: it is a very round product and so roundly criticized; it is not square at all and so will be criticized. If it were a cube it would also be criticized for not being round enough. My point is that critics have to criticize and are simply oblivious to what is right before their eyes and ears.

      0
      February 9, 2018
  2. Gregg Thurman said:

    And the reason for a smaller/less expensive HomePod$. Well the original was too big and expensive, that’s why.

    But I’m forecasting 6 million units in its inaugural year (>$2 Billion revenue generating >$700 million gross margin dollars).

    It amazes me that the only people focusing on Apple’s pricing are the same one’s that drive BMW, Lexus or Mercedes and vacation in St. Bart’s.

    0
    February 9, 2018

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