Apple Inc (AAPL) Stock Price Expected To Go Higher With Strong iPhone Sales, Apple Watch Release

Apple Inc stock traded at $126.93 per share in pre-market trading last March 6 as analysts continue to expect the company’s stock to rise. UBS analysts said they expect 66 million iPhone units to be sold in the March quarter.

According to the Apple Insider, UBS’ proprietary iPhone monitor tool shows a higher estimate of iPhone sales compared to consensus figure of 54 million units. The high demand for Apple’s iPhone 6 continues to outstrip supply leading UBS analyst Steven Milunovich to increase his iPhone sales forecast from 55 million to 58 million.

Apple sold 43.7 million iPhones in the same quarter of 2014. Previous reports have indicated that Apple has only reached the 50 million iPhone mark since the device first came out.

Barclays analyst Ben Reitzes believes Apple will sell 54 million iPhones in the March quarter. In the last December quarter, Apple reached record iPhone sales of 74.5 million units. China and its huge mobile market are expected to continue to drive Apple sales higher. Continued demand is also being supported by existing iPhone users who want to upgrade their devices including the “switchers” from Android and other platforms.

According to a survey conducted by UBS, about 13 percent of existing iPhone users have upgraded to iPhone 6 while 20 percent of Samsung users indicated they were considering switching to Apple. UBS has reiterated its “Buy” rating of Apple stock with a 12-month price target of $150.

Meanwhile, the highly anticipated Apple Watch has become the subject of mixed predictions from analysts and observers. CNN technology editor David Goldman said Apple would need a new product to move away from its reliance on the iPhone. He believes the company’s Apple Watch will not be that product. Goldman argued that Apple’s wearable device was not only “too pricey” but uncompelling and unlikely to be updated within the year.

Morgan Stanley analyst Katy Huberty said Apple shares could reach $160 in a year even after the release of the Apple Watch. She argued that Apple has the “world’s most valuable technology platform” due to a loyal customer base who are willing to pay more for premium products and services. She believes Apple still has plenty of room to expand, reports The Guardian.

Huberty said Apple’s current line-up of products and services have become useful in a third of the average day for most people. She added that Apple could increase that by going into TV and the rumoured car market.

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