Apple Inc (AAPL) Stock Surge Expected Soon as Analysts Predict iPhone Opening Weekend Sales
Apple Inc has recently debuted its new iPhones for sale last weekend with eager fans enduring long lines just to get the company's latest smartphones with bigger screens. Investors and analysts were expected to monitor the new iPhones' first weekend sales as the figures usually reveal future trends.
According to reports, expectations for the weekend sales of iPhone 6 and iPhone 6 Plus are high since the two new iPhones are considered significant upgrades due to their larger screens than earlier iPhone models. When Apple finally gave in to consumer demand for bigger screens, the company is predicted to attract not only loyal fans but also new customers who may have been waiting for Apple to supersize their smaller-screened smartphones.
In 2013, Apple sold nine million units of its iPhone 5S and iPhone 5C during the first weekend. The company went on to sell 51 million units in the holiday quarter. Wells Fargo analyst Maynard Um predicts weekend sales of the new iPhones to be high. Um said his prediction is based partly on the iPhones' four million pre-order figures. He expected Apple to sell the iPhone 6 and iPhone 6 Plus in the "low teens" of millions.
Piper Jaffray analyst Gene Munster had a lower estimate of opening weekend iPhone sales. He predicted that Apple will sell 6.5 million units since the number of new iPhones the company can sell will depend on it retailers' supply. Reports have previously surfaced that the current supply of new iPhones is constrained due to high pre-order demand.
Mr Munster added that first weekend sales may no longer be strong indicators of overall iPhone demand. He said Apple's growing number of retail points may present added confusion to actual sales numbers. The analyst believes Apple's four million pre-order figures indicate a clearer demand since the number means consumers are highly interested in the products despite supply limitations.
Carl Howe, a 451 Research, LLC analyst, has predicted higher iPhone opening weekend sales at 12 to 15 million while Sanford Bernstein & Co analyst Toni Sacconaghi wrote in a note to investors that sales will be 8 million units. He said the company's supply limitations and the fact that China is not one of the first countries to sell the new iPhones are factors to lower expected sales figures.
Reports said the surge in Apple stock will depend on high iPhone 6 and iPhone 6 Plus in the coming months. Analysts already expect a strong holiday quarter for Apple.