BofA/Merrill analyst Wamsi Mohan lowered his iPhone estimates for Apple's December quarter and fiscal 2019 to account for a slowdown in China and broader currency headwinds. The analyst, who expects Apple to beat September quarter expectations when reporting on November 1, dropped his December quarter iPhone unit estimate to 73M from 77M and fiscal 2019 estimate to 214M from 222M. While "weaker end markets create some near-term headwinds," Apple's "strong growth" in Services, "strong" capital return and cash balance "affords optionality," Mohan tells investors in a pre-earnings research note. As such, despite reducing his price target for the shares to $235 from $256, the analyst reiterates a Buy rating on Apple. Mohan points out that the dollar strengthened significantly against the Chinese renminbi at a time when iPhone average selling prices have increased significantly. During the past cycle of a strengthening dollar in 2015-2016, China iPhone units declined 20% and overall Apple China sales declined 24% year-over-year, says the analyst. While iPhone's gross margin benefits from lower NAND costs, currency moves bring headwinds, he believes. However, Mohan coupled the iPhone unit reduction with an increase to Apple Watch units. On the latter, he raised his estimate for fiscal 2019 units to 42.3M from 39.3M. Apple in morning trading is up 1.5%, or $3.16, to $219.46.

UBS analyst Timothy Arcuri expects Apple to report in-line Q4 results and for guidance to have an upward bias. The analyst sees a clear upward bias on average selling prices, but will be watching for comments on upgrade cycles, which seem to be lengthening at a slower rate. He is also interested to hear about potential video offerings, services growth, and if the demand outlook has been impacted by global tariff risks. Arcuri reiterated his Buy rating and $250 price target on Apple shares.

Wedbush analyst Daniel Ives believes Apple's earnings and more importantly guidance around initial iPhone demand heading into year-end and its trajectory for 2019 will be a positive catalyst for Cupertino and its investors, as well as the overall tech sector. The analyst reiterates an Outperform rating and $310 price target on the shares.