As reported by Morgan Stanley, Apple iPhone sales likely to hit 53 million units in Q3.
Apple Inc., the tech behemoth is all set to schedule a time where they will reveal their earnings for the third trimestral when July FY15 ends. The company has been extremely successful with the rampant popularity of Apple iPhone 6 and 6 Plus. This has resulted in the tech giant to grow considerably in each trimestral. However, analyst at The Street believe that the popularity of iPhones is likely to experience a downfall since the refresh cycle issue is becoming an issue for users.
An AlphaWise survey was conducted by Morgan Staley that will help them to track the demand for iPhone for the three month tenure ending in June. According to the survey, Apple is back in the game where it might sell around 53 million iPhone units during the current trimestral. This forecast, however, remains unchanged to what they predicted in May.
Katy Huberty, an analyst at Morgan Stanley believes that the growing markets have immense potential where China is likely to drive growth for them. The Chinese market has demands that are relatively late in the production cycle. Huberty highlights that the results of AlphaWise survey seem to be on par with the supply chain checks that took place recently for Apple.
According to Jasmine Lu, the tech analyst for Morgan Stanley believes that the company will be able to sell almost 54 million units of its flagship smartphone.
Huberty further believes that if all other aspects are monitored and remain constant, the three million devices according to the survey along with the 50 million other units estimations made for the iPhone would result in an increase in revenues by $.8 billion for the company. This would actually result in an 11 percent increase considering “Morgan Stanley’s EPS estimate of $1.82.”
Apart from that, the tracker by the Morgan Stanley for Apple Watch clearky highlights that the need for Apple iPhones has now stabilized at a 20 percent higher if considering that the first iPhone took almost six weeks to its launch. According to Huberty, “"Watch interest in the week of launch was about half that for the first iPhone, but the Watch has seen a much smaller deceleration since the initial spike.”
Hence, in a nutshell, Morgan Stanley has made an estimate which will not be so difficult for Apple to achieve considering the immense popularity of their products and services with the masses. The company has established itself as a reputable brand and this will help to sale swiftly in the long run.
The sales of iPhone 6 have resulted in the decrease in the demand for iPad, according to the CEO of the Silicon Valley company.
According to recent Apple news, the company reported its earnings for the quarter in which it discussed issues that have long been bothering the firm. The CEO of the firm was seen talking about the decline in the sales of iPad which has become a constant issue that the company has been facing for a couple of quarters now. In the most recent quarterly earnings, Tim Cook told the press that the iPad sales have fallen yet again, witnessing a massive decline, with the revenue coming down by 29% whereas the shipments saw a dip of around 23%. This further fall in the sales has raised concerns of the investors only a little bit keeping in mind the exceptionally great sales that the company has managed to make the iPhone sales.
One reason that was given by Apple’s CEO Tim Cook was that the iPhone making company reduced the units that were normally shipped by around one million units which were why the decline in sales was being witnessed. However, analysts believe that this reason is not good enough because even if the company had not cut down on the shipments, the decline on a year over year basis was still recorded at around 16.7%.
The statement of Cook that caught everyone attention was when he said that the dip in the sales of iPad that was being faced was due to the overpowering sales of Apple iPhone 6 and iPhone 6 Plus as well as the sales of Mac. According to analysts, the fact that Steve Jobs, the previous CEO of Apple, believed in competing with the company and its products is something that is being followed by Tim Cook now as well, as the competition that has been built within the company is the main reason why sales of one significant product of the producers have seen a decline.
Analysts believe that even though the issue of the dip in iPad sales has been brought up every now and then, it is a fact that Apple is not as much concerned about the decrement in the iPad demand as, on the other hand, the extraordinary sales of iPhone have solved many of the problems that the company could have faced.
Furthermore, it was seemingly surprising for analysts to hear that iPhone was not the only product affecting the Apple iPad demand, but the sales of Mac has also increased over the past couple of quarters, hence becoming a reason of hindrance in iPad sales too.
Customers who are using the iPhone 6 and 6 Plus have a rational reason for not going for an iPad update as the phones that they are using are expensive and big in size too, eliminating the need for another gadget of the same kind.
