Analyst: September Sales Make Apple a Buy

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Cantor Fitzgerald analyst Brian White followed up on his preliminary Apple (NASDAQ:AAPL) September sales assessment that he released earlier this week with a final “Apple Barometer” report on Thursday. The Apple Barometer uses sales information from an index of Taiwan-based suppliers in order to predict Apple’s iPhone sales growth.

According to White, the Apple Barometer showed 10 percent month-over-month growth, which is close to the average 11 percent rate of growth seen in the previous eight years. However, the analyst also pointed out that Apple only started doing fall iPhone launches in 2011, which tends to skew long-term comparisons for September sales. Regardless, September’s 10 percent month-over-month growth rate is significantly higher than last year’s rate of 3 percent.

Although Hon Hai Precision Industry is not included in Cantor Fitzgerald’s index of Apple Barometer companies, White noted that Hon Hai’s September sales rose by 20 percent month over month, which is higher than the average 19 percent MoM growth rate that it has over the past eight years. Hon Hai, also known as Foxconn, is a well-known manufacturer of Apple’s iPad and iPhone products.

Besides noting Apple’s solid September sales, White also offered his thoughts on the possible upcoming release of a larger-screen iPhone and a long-rumored “iWatch” wearable tech product. According to the analyst, Apple will release a larger version of the iPhone in the second or third quarter of 2014.

White was less specific about the launch of the so-called iWatch, but predicted that the wearable tech device will be released before the end of 2014. According to White’s supply chain sources, Apple’s iWatch will not just be a peripheral product that is tethered to the iPhone — it will also include climate and lighting controls for a wireless “smart home.”

Based on Apple’s strong September sales and the earning potential of Apple’s future products in 2014, White reiterates a Buy rating on Apple stock. Here’s how Apple has traded over the past five sessions.

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