Analyst: No Summer Sales Doldrums for Apple This Year
Since the release of the iPhone 4S in 2011, Apple (NASDAQ:AAPL) has typically refreshed its products in the fall. As a result, the Cupertino-based company usually sees a fairly significant drop off in sales during the summer, as many consumers hold off on buying new Apple products until the latest models are released. However, the iPhone maker may skip the seasonal sales doldrums this year. According to the latest data from Cantor Fitzgerald’s Apple Barometer, sales for Apple’s suppliers were unusually high last month, reports TheStreet. The firm’s Apple Barometer monitors the sales of various Taiwan-based suppliers that generate the majority of their sales revenue from Apple. As such, the Apple Barometer provides an early indication of the amount of demand for the company’s products.
“Preliminary May sales (98 percent of sales have been reported) for the companies in our Apple Barometer have been reported and were stronger than typical seasonality,” wrote Cantor Fitzgerald analyst Brian White in a note obtained by TheStreet. “Sales in May rose by approximately 6-7 percent MoM [month-over-month] and were above the average increase of 2 percent over the past nine years.”
Based on May’s results, Apple Barometer sales are expected to sequentially rise by 18 to 20 percent in the second calendar quarter of 2014. According to White, the average sequential increase seen over the past nine years has been 10 percent. Although White still expects a sequential dip in the third-quarter, he believes the drop off in sales will be less impactful than what has been seen in previous years.