Analyst: China Has ‘Mega-Sized’ Appetite for Apple’s iPhone 6
Cantor Fitzgerald analyst Brian White took a close look Apple’s (NASDAQ:AAPL) supply chain and offered his thoughts on the Cupertino, California-based company’s expected product launches this fall in a note issued to investors on Monday. According to preliminary figures in the firm’s so-called “Apple Barometer,” sales during the month of June were “better than typical seasonality.” Cantor Fitzgerald’s Apple Barometer monitors the sales of various Taiwan-based suppliers that generate a majority of their sales revenue from Apple.
Although month-over-month sales growth in June was essentially flat with an increase of 1 percent or less, this was higher than the average decline of 3 percent that has been seen over the past nine years. Based on preliminary June sales numbers, White estimated that total second-quarter sales for the Apple Barometer likely saw quarter-over-quarter growth of 20 to 21 percent, approximately two times higher than the average increase of 10 percent seen over the past nine years.
White noted that the Apple Barometer demonstrated a “strong performance” during a quarter that has historically been a transition period for Apple. Cantor Fitzgerald is forecasting $37.8 billion in revenue for Apple’s June quarter, which is at the high end of Apple’s guidance for revenue between $36 billion and $38 billion.
However, White suggested that Apple’s upcoming product launches in the fall are far more important than the company’s earnings release on June 22. According to rumors reported by multiple media outlets, Apple’s iPhone 6 will be released sometime in September in two larger screen sizes of 4.7 inches and 5.5 inches. Apple is also widely expected to launch a wrist-worn wearable tech product that has been dubbed the “iWatch” in October.