Apple Inc's iPhone 5S, iPad Air Continue Strong Sales Growth, Analysts Still Recommend 'Buy' Rating
Apple Inc's iPhone 5S and iPad Air sales continue to grow stronger, according to recent global surveys and data from U.S. carriers. The sales growth is boosted by improving supply levels. Analysts have also observed steady sales in the iPhone 5C.
According to Canaccord Genuity's Michael Walkley, Matthew Ramsay and Siddharth Sinha, Apple Inc's iPad Mini with retina display sales is affected by supply constraints. Analysts expect constraints to throughout the holiday quarter.
However, Apple analysts also expect favourable quarterly sales for both the iPhone and iPad as consumers shift purchases to the higher-priced iPhone 5S and iPad Air.
A TD-LTE iPhone launch with China Mobile may boost Apple Inc's March 2014 quarter sales. Apple's large share buyback programme is also expected to help the company return to a favourable earnings per share (EPS) growth in fiscal year 2014/15. Cannacord analysts' maintain their buy rating for Apple shares.
Apple Inc is expected to deliver a strong sales performance in the holiday quarter based on analysts' predictions. According to Apple analysts at Cantor Fitzgerald, they expect a "strong hand" from the company with what they view as a successful opening weekend sales for the iPhone 5S and a positive welcome for the launch of the iPad Air.
Analyst Brian J. White uses information provided by Apple Inc's top suppliers in Taiwan which also reportedly receives a high percentage of sales from the tech giant. Mr White checked the preliminary sales data for the month of October from various companies. By looking at the data, he said Apple may be on track for a record sales growth.
According to Mr White, 96 per cent of Apple Inc's sales in October were included in the analysts' Apple Barometer. Analysts said Apple's sales are predicted to increase by 11 per cent on a month-to-month basis. The estimates are more than the average of flat sales performance for the company in the last eight years.
Apple Inc may be moving in the right direction with sales and market share growing significantly in international markets. Apple Inc's iPhone has an unexpected hot market in Japan. According to Tokyo-based MM Research, Apple has gained a 37 per cent share in the Japanese smartphone market. The figure is a significant number, considering Apple Inc has a 36 per cent market share in the United States.