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Jan. 25, 2021, 12:45 p.m. EST

Get ready for Apple’s first $100 billion quarter in history

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By Emily Bary

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Morgan Stanley’s Huberty is interested in the company’s China momentum. She suspects that the company is benefiting from weakness at Huawei, citing data that suggest customers are switching from Huawei to Apple devices at the highest rate in 15 months. She has an overweight rating and $152 price target on the stock.

Goldman Sachs analyst Rod Hall echoed the point about Huawei’s challenges, though he’s concerned “that Apple has already begun cutting iPhone orders” and that build orders for the first half of 2021 suggest a move toward models with lower average selling prices.

For more: Apple bear throws cold water on ‘supercycle’ story

“These changes are consistent, in our opinion, with a normal iPhone redesign cycle but are not consistent with a supercycle,” he wrote. “As a result we continue to expect iPhone replacement rates to resume their ongoing decline in 2021.” Hall has a sell rating and $85 target price on Apple shares .

Monness, Crespi, Hardt & Co. analyst Brian White highlights several new products and services that Apple could shed light on during the quarterly call. During the December quarter, the company began selling its AirPods Max over-the-ear headphones and rolled out both a subscription fitness offering and a way to bundle service together for a discount.

Read: Apple is getting an earful over the AirPods Max’s $549 price tag

“In our view, Apple’s portfolio was positioned better-than-ever heading into the recent holiday season, while product and service updates position Planet Apple well in 2021,” he wrote. White has a buy rating and $144 price target on Apple shares.

Raymond James analyst Chris Caso is especially upbeat about the prospects for the Mac business.

“With regard to Macs, we think the new M1-powered Macs have been extremely popular with consumers due to their superior performance and battery life, amid strong demand for the PC category in general,” he wrote, referring to the computers containing Apple’s new custom chip. “Mac growth was already good, up 29% year over year in F4Q, and we expect the new product launches to drive year-over-year growth higher.”

He has an outperform rating and $150 price target on the stock.

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