3 iPhone Questions Wells Fargo Wants Answered

Investors never know what exactly to expect from Apple Inc. (NASDAQ: AAPL) product launch events. However, with the unveiling of the iPhone 7 coming on Wednesday, Wells Fargo will be looking for three things in particular.

Analyst Maynard Um expects Apple to reveal its new iPhone 7 and iPhone 7 Plus models, as well as a new Apple Watch. But three unknowns will be critical for Apple investors:

• When will the iPhone release date be, and which countries/carriers will be involved?
• Will the design and features of the new iPhone allow for sell-through to continue through March/June quarters of 2017?
• Will storage capacity shift from 16GB/64GB/128GB to 32GB/128GB/256GB?

Wells Fargo is looking for a September 16 iPhone launch and believes Wall Street may be missing a key detail in its current Q4 projections.

“We continue to believe the extra week in December could drive upward earnings revisions as we believe the Street does not appear to have fully embedded the extra week into their forecasts (though we believe a number of investors now expect the earnings upside),” Um explains.

Related Link: How Should You Trade Apple's iPhone 7 Event?

Um isn't expecting any major design changes in the iPhone 7 and believes Apple will choose to be conservative ahead of the highly-anticipated 10-year anniversary iPhone launch next year.

In the meantime, Wells Fargo sees upside to Apple’s stock. The firm has an Outperform rating on Apple and values the stock in the $115-$125 range.