Apple (NASDAQ:AAPL) may be under a share-price strain lately, but according to Topeka Capital Markets analyst Brian White, the company’s supply chain is on a big high. Apple’s suppliers have received the windfall of the company’s many product overhauls over the past few months and saw a combined year-over-year growth rate of 29 percent in October, White wrote in his monthly “Apple Monitor” report.
The analyst tracked sales trends across Apple’s Taiwan supply chain at companies that generate a high percentage of their revenues from the iPhone maker, according to Apple Insider.
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Not only does the latest increase follow September’s drop of 1 percent, it is way above the average 2 percent year-over-year growth seen in the month of October over the last 7 years.
White added that Apple’s new product releases were an “unprecedented” transition and were likely to account for 80 percent of the company’s total sales is this quarter. He also said that he remained bullish on Apple despite the “selling pressure” being experienced by the stock. “The iPhone 5 and iPad mini are blockbuster new products that we believe will prove to be big hits this holiday season and into 2013, combined with the new iPad, MacBook Pro, iMac, and iPod lineup,” White wrote.
White has a 12-month price target of $1,111 on Apple stock, a figure that is currently almost double the company’s stock price.