AAPL Revenue Shift Predicted as iPhone Upgrade Cycle Split

Apple Inc.'s (NASDAQ:AAPL) revenue may see a shift into 2027, according to Gene Munster of Deepwater Asset Management. He believes that Apple's decision to split its iPhone upgrade cycle could pressure near-term growth, but push more revenue into the March and June quarters.

Munster estimates that Wall Street expects roughly 14% to 15% growth for the March quarter, but thinks this number could approach 20% due to delayed launches. He is also watching Apple's pricing strategy and rollout of Siri, saying that past price increases have caused little change in customer retention.

This suggests that Apple still has room to raise prices without significantly hurting demand, according to Munster. However, he notes that higher memory costs pressure margins, limiting Apple's unlimited pricing power.