(Maxim) Apple: Data points suggest mix shift to high margin iPhone X will drive

Maxim expects at least 25% of total iPhones to be an iPhone X, while iPhone 8/8+ to be down ~27% y/y relative to iPhone 7. Given data points that suggest significant mix shift to iPhone X, we continue to believe that gross margin (GM) will be materially higher than consensus expectations with potential for elevated GM to be sustained. Reiterate Buy rating and 12-month price target of $182, based on normalized earnings power.

>>> Harvard Study Proves Apple Slows Down old iPhones to Sell Millions of New Mo


If you were Apple, what tricks would you utilize to increase the sales of your latest product?
If you know corporations, you’d know they use any possible trick they can as a generality to increase their profit: think of how huge a factor it would make in the sale of new iPhones if the old ones became slower.
People have made the anecdotal observation that their Apple products become much slower right before the release of a new model.
Now, a Harvard University study has done what any person with Google Trends could do, and pointed out that Google searches for “iPhone slow” spiked multiple times, just before the release of a new iPhone each time.

The study was performed by student Laura Trucco. The study also compared the results to “Samsung Galaxy slow,” and found that the same spike in searches did not occur before the release of a new Samsung phone.
This isn’t the first time the theory has been put forth. Surprisingly a New York Times writer suggested Apple might configure its new operating systems to only really work properly on new devices.
Writer Catherine Rampell said:
When major innovations remain out of reach, and degrading durability threatens to tick off loyal customers, companies like Apple can still take a cue from the fashion industry.
The public has to get wise to the way corporations generally operate. They hire efficiency experts and people who can maximize the profit made from any product they produce. Not every corporation is the same, but the inherent incentive must be understood, or people will continuously be played by the corporations.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • PSDO -8.1%, CMP -7.9%, (Compass Minerals lowers FY18 EPS guidance to $2.50-2.80, vs. $3.04 Capital IQ Consensus Est, down from $3.00-3.50 prior guidance after reports short-term production constraints at Goderich Mine ), FINL -6.8%, RVLT -3.8%, (guidance)
Other news:
  • VSAR -84.7% (Versartis announces Phase 3 VELOCITY trial of somavaratan in pediatric growth hormone deficiency did not meet primary endpoint; plan to provide a corporate update later this year )
  • FALC -22.1% (Nasdaq will suspend trading in its shares effective at the open of business on September 25; shares will be quoted on the OTC Markets' OTCQB)
  • UPL -12.1% (confirms bankruptcy court denied the Co's objection to certain make-whole and post-petition interest claims)
  • VERI -6% (pulling back frollowing recent strength)
  • GRUB -5.7% (following news that Wal Mart (WMT) is testing a new food delivery service (see 8:02) and that Amazon (AMZN) plans to partner to Olo for online food ordering)
  • ICPT -4% (continued weakness)
Analyst comments:
  • RMBS -4% (downgraded to Neutral from Overweight at JP Morgan)
  • X -3.5% (downgraded to Underperform from Market Perform at Cowen)
  • EXEL -3.5% (downgraded to Mkt Perform from Outperform at Leerink Partners)
  • TIF -1.1% (downgraded to Neutral from Buy at Goldman)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • KMX +2.6%, YOGA +1.3%
M&A news:
  • S +3.5% (T-Mobile US and Sprint (S) are nearing agreement on deal terms, according to Reuters)
  • FCAU +3.4% (strength attributed to renewed M&A speculation)
  • TMUS +1.5% (T-Mobile US and Sprint (S) are nearing agreement on deal terms, according to Reuters)
Other news:
  • EBIO +4.9% (completes the manufacturing of all Vicinium necessary for its ongoing Phase 3 registration trial in patients with non-muscle invasive bladder cancer)
  • TAHO +4.5% (raises gold production guidance)
  • JUNO +3.8% (modestly rebounding)
  • KTOS +2.1% ( lifting in extended trade after confirming it successfully supported the U.S. Navy in third test of the AN/SPY-6(V) Air and Missile Defense Radar against a live ballistic missile target)
  • TXN +1.1% (authorizes the repurchase additional $6.0 bln of common stock and will raise quarterly cash dividend)
Analyst comments:
  • EFX +2.9% (upgraded to Outperform from Market Perform at Wells Fargo)
  • CUB +2.1% (upgraded to Strong Buy at Raymond James)
  • EVA +1.2% (upgraded to Buy from Neutral at Citigroup)
  • AAL +1.1% (upgraded to Overweight from Equal Weight at Barclays)