Analyst: Orders for Apple’s iPhone 6 Surpass iPhone 5S
Apple’s (NASDAQ:AAPL) upcoming iPhone 6 could reignite the company’s sales growth, according to a new research note from Morgan Stanley analyst Katy Huberty. According to Apple Insider, the analyst recently visited sources in the Cupertino-based company’s Asian supply chain. Based on her supply chain checks, Huberty reported that sales for the iPhone 6 were expected to be 20 percent higher than last year’s iPhone 5S launch, reports Apple Insider. The anticipated production boost could make Apple’s next iPhone launch the biggest in its history.
Huberty was originally expecting only a 12 percent increase, according to Business Insider. As noted by Apple senior vice president and chief financial officer Peter Oppenheimer during the company’s fiscal first-quarter earnings call in January, Apple saw only a 7 percent increase in iPhone sales during the last quarter of calendar 2013, so an increase of 20 percent would be an impressive improvement. On the other hand, as noted by Apple Insider, Apple doesn’t separate its iPhone sales by model so it’s impossible to know how what percentage of its sales was derived from the iPhone 5S.
Huberty also noted that this year’s launch would likely go smoother than last year’s iPhone 5S launch. “At this point, we see no major bottleneck in iPhone 6 production and an earlier production ramp could improve volumes early in the cycle,” wrote Huberty in a research note obtained by Business Insider. Last year, Apple’s iPhone 5S launch was plagued with worldwide inventory shortages, which some analysts blamed on production constraints due to yield issues with the Touch ID fingerprint sensor.