The launch of the iPhone 5 by Apple Inc.(NASDAQ:AAPL)on
Wednesday has, predictably, sent analysts scurrying to their excel sheets to
revise their estimates of the sales of the new device and what the impact would
be on the company's bottom line.
Piper Jaffray analyst Gene Munster, a sell-side
analyst, maintained his price target for the company at $910 a share.
Shares in the Cupertino company rose 1.4 percent to
$669.79 after the launch.
According to Munster the phone will meet or exceed
customer expectations. His new estimates are - the phone will sell about 6 to
10 million units in the September quarter itself. he total sales of all the
iPhones put together is expected to be in the region of 27 million, which is up
from the 22 million previously forecast.
Will AAPL Hit
$1000 BY This Year? Find Out Here
The brokerage termed the launch as the largest
Consumer Product Launch in history.
"Apple Inc. announced the iPhone 5 today
including a 4 inch screen, LTE, and redesigned aluminium/glass casing. Piper
believes that the phone itself was largely in-line with investor and consumer
expectations given various photos of the phone from blogs. The new phone
launches September 21st, also as widely expected."
Piper has estimated that in the September quarter
Apple's revenues would rise by 9 percent.
While Munster previously expected December units to
shift to September for a September launch, Piper is maintaining Piper’s 49
million December estimates as they believe Apple can still deliver on the 32
percent year on year growth that number assumes. They believe that there is a
good chance the iPhone 5 launches in China by December.
Shares of AAPL jumped another 1.20% on Thursday.
My advice is read the consumer reaction to the iPhone 5 before blowing that bubble up too big - it's being widely hailed as ... 'disappointing'
ReplyDeleteWill this analyst get fired if he's wrong?
ReplyDeleteYou hear all these baseless projections for Apple flying around, and so far, they have proven to be right, but not on merit.
The iPhone5 is WIDELY criticized for being a mediocre upgrade at best (read on any of the Apple or tech forums what users think).
Then again, the iPhone 4S was a garbage update as well, and it sold like crazy (again, with no logic behind the numbers), so who knows.
I am buying the stock and will continually do so as long as there are millions and millions of users that are willing to keep upgrading their phone set.
ReplyDeleteJust watch the video in their website...