Stock in Focus: Apple (NASDAQ AAPL) Has A Great Week Despite Supply Fears

AAPL Apple Inc

Apple Inc (NASDAQ AAPL) should see a higher average selling price for the iPhone this year, thanks to a number of factors, according to analysts at Stifel. Also Cantor Fitzgerald analysts say Apple executed very well in the iPhone 6 and 6 Plus opening weekend—despite the odds stacked against it.

Analysts continue to weigh in on Apple Inc.’s opening weekend for the iPhone 6 and the iPhone 6 Plus. In a report dated Sept. 22, 2014, Stifel analyst Aaron Rakers and his team provide a history of early iPhone sales by cycle. For the iPhone 6 and iPhone 6 Plus, Apple took more than 4 million preorders and sold more than 10 million on opening weekend. For the iPhone 5, the company took more than 2 million preorders. Apple did not disclose preorder numbers for the iPhone 5S and 5C last year.

The Stifel team estimates that in the launch quarter and the December quarter, Apple will sell a total of 96.3 million iPhones. That compares to last year’s 84.8 million in the launch quarter and the following quarter.

Apple Inc (NASDAQ AAPL): iPhone 6

The Stifel analysts think that Apple will see a higher average selling price for the iPhone this year for two big reasons. First, they think the sales mix of the iPhone 6 and more expensive iPhone 6 Plus will carry it higher. Second, they point out that customers can no longer opt for a 32-gigabyte model.

They note that last year with the iPhone 5S and iPhone 5C product cycle, Apple’s blended average selling price rose by $60 between the September and December quarters. It climbed from $577 to $637 quarter over quarter.

The Stifel analysts also point out that Apple plans to have the two new iPhone models up for sale in 115 countries by the end of this year. In the last two years, the iPhone 5 and the iPhone 5S and 5C were available in only 100 countries by the end of their respective launch years.

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Apple Inc financial news (NASDAQ AAPL)

Of course this rapid expansion is a positive because it means Apple thinks it can have enough iPhone 6 and 6 Plus units available for consumers in more countries. That’s in spite of what appears to be higher demand this year.

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