Analyst: Apple’s Sales Numbers Prove Customers Love iPhone 5C
Cantor Fitzgerald analyst Brian White offered his perspective on Apple’s (NASDAQ:AAPL) record-breaking iPhone launch weekend sales numbers in a recent note to investors. White noted that Apple’s nine million iPhone 5S and iPhone 5C sales from this past weekend were about 80 percent more than the five million iPhone 5 sales that Apple recorded during last year’s launch weekend.
Apple’s weekend sales numbers were also considerably higher than most analysts’ expectations. White noted that his own prediction of 6 to 6.5 million units “was at the high end of expectations.” For example, Piper Jaffray analyst Gene Munster had a more conservative estimate of 5.5 million units.
White also pointed out that the high weekend sales numbers indicated a strong demand for the iPhone 5C. Many retailers reported having a low iPhone 5S inventory before the sale even began and Apple’s press release confirmed that, “Demand for iPhone 5s has exceeded the initial supply.”
Since the iPhone 5S was in short supply, White concluded that the impressive weekend sales numbers were likely due to a strong demand for the iPhone 5C. The popularity of the iPhone 5C also contradicted many analysts’ expectations that the iPhone 5C would be a poor seller due to its higher-than-expected price.
“We believe Apple’s stock will react very positively to this announcement, and this highlights the strong demand around the new iPhone 5C that, in our opinion, undeservedly received unfair criticism at launch,” wrote White.
Cantor Fitzgerald reiterated a Buy rating on Apple stock and a $777 price target. Here’s how Apple has traded so far today.
Follow Nathanael on Twitter (@ArnoldEtan_WSCS)