Analyst: Surveys Show ‘Continued Strong Sales’ for Apple’s iPhone 5S


A major market research firm reports that two important iPhone 5S metrics may converge during the holiday December quarter. According to Canaccord Genuity analyst Mike Walkley, consumer demand for Apple’s (NASDAQ:AAPL) iPhone 5S is likely to remain strong as the overall availability of the device continues to increase, reports StreetInsider.

“Our October/November surveys indicated continued strong sales of the new iPhone 5s, as it was by far the top selling smartphone at all four tier-1 U.S. carriers and at most channels where the smartphone launched globally,” wrote Walkley via StreetInsider. The strong consumer demand also appears to be meshing with Apple’s improved iPhone 5S supply.

“Our surveys indicated much improved iPhone 5s supply and availability for the silver and space grey iPhone 5s models versus September levels,” noted the analyst via StreetInsider. Walkley’s iPhone 5S supply data is in line with a recent note from Piper Jaffray analyst Gene Munster. Munster wrote that the growing iPhone 5S supply is a sign that “Apple has begun to catch up to demand.”

However, Walkley also noted that the popular gold-colored iPhone 5S may still be in short supply. According to his data, wait times for the gold iPhone 5S range from “10 days to over a month” depending on the carrier and capacity. This is in contrast to wait times of “3 to 5 business days” for most capacities of the silver and space-gray models of the iPhone 5S.

Walkley also took a look at the expected sales for some of Apple’s other new devices. He noted “steady iPhone 5c sales” and predicted “share losses for other leading Android OEMs.” Although he noted strong initial iPad Air sales, he believes that sales of the iPad mini with Retina display may be limited due to supply constraints.

Based on his survey data, Walkley raised his 2014 annual revenue and EPS estimates to $184.8 billion and $44.48, respectively. He also increased his 2015 annual revenue estimate to $197 billion and his 2015 EPS estimate to $48.78. Walkley reiterated a “Buy” rating and a $580 price target on Apple stock. “We anticipate Apple will gain smartphone and tablet market share gains during the December holiday quarter,” concluded Walkley via StreetInsider. Here’s how Apple traded today.


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