Apple Inc. (AAPL) iPhone, iPad Sales To Come In Strong. What About Watch?


Apple Inc. stock could give a break out above $130 after the 3Q results on Tuesday, notes Sean Udall, CIO of Quantum Trading Strategies told Benzinga. Udall noted that the quarter is going to be a good one for Apple just like any other quarter.


iPad sales to come in strong

Udal said “I’m trying to figure out if the stock has dropped enough, or if the firm posts results similar to the last quarter then will the stock surge above $130. “It’s been locked under $130. I think, maybe, now it can.”


Udall expects Apple  to sell 50.7m iPhone units, 11.6m iPads, 4.9m Macs and 3.5m watches. He noted that once the iPads remain in a market for a while, sales will boost again. The expert noted the iPad 1 is an indestructible product, and no one could have thought that the product will keep going on for last five, six years.

On the Mac sales, Udall notes sales will be robust, but the demand is seasonal. The analyst feels that a sleeker MacBook will sell better in the next two-quarters. It is tough to sell a lot of PCs this quarter as “it’s summertime — late spring, early summer. Who’s buying PCs, Mac PCs? If you have a broken product, you go and buy one,” the expert noted in his report.

Apple Watch estimates. Still a puzzle?

Now we know the iPhone and iPads sales will be robust, but what about the Apple Watch. On  watch sales number there is still a lot of speculation with analysts divided over the units the firm will sell. Apple  has been quiet on the numbers so far, and there are good chances that it does not even report the numbers separately.

But it does not stop analysts from coming up with their own numbers, and in reality these estimates are all over the place. Philip Elmer-DeWitt from Fortune has come up with a list of estimates from 27 analysts. Though the average of all is reasonable at 4.07m units, the difference in the highest to lowest is worth looking at.

Jefferies expect sApple to sell 5.70m units, which is highest from any analyst while the lowest estimate is of just 2.85m units, a difference of almost 3m units.

Though the lowest comes from a relatively new analyst, numbers from other well-known names such as Gene Munster, and KGI are not much different. Estimates from Canaccord, Piper Jaffray, Credit Suisse, Oppenheimer and others all are around 3m units. Hopefully, the picture will be clear when Apple reports its earnings tomorrow.

On Friday, Apple shares closed up 0.86% at $129.62, and year to date, the stock is up over 15%.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

HTML Snippets Powered By : XYZScripts.com