Apple's iPhone, iPad mini sales even stronger than expected - report

Posted:
in AAPL Investors edited January 2014
Sales of Apple's recently updated iPhone lineup, along with the new iPad mini, are surprising to the upside, according to supply chain sources who spoke with one analyst.

Katy Huberty of Morgan Stanley said in a note to investors on Thursday that her recent meetings with members of Apple's supply chain in Asia signaled that iPhone and iPad mini sales are even stronger than had been anticipated.

"Key suppliers into iPhone and iPad noted above seasonal March quarter order trends, stronger than expected December quarter revenue, and the potential to further upside before year-end," Huberty wrote.

She believes that Apple will outpace Wall Street expectations in the December quarter. Market watchers generally expect Apple to sell 46 million iPhones and 23 million iPads in the three-month frame.

She also thinks Apple will again beat expectations in the March quarter, when Wall Street forecasts Apple will sell 43 million iPhones and 19 million iPads.



Huberty said that supply constraints, including the new in-cell touchscreen panels found in the iPHone 5, are no longer an issue. Suppliers informed her that yield rates are now between 70 and 80 percent in the December quarter.

While demand for Apple products has been strong, the PC market is struggling, suppliers informed Huberty. They indicated that PC demand has lessened, even following the much-hyped launch of Microsoft's new Windows 8 operating system.

Suppliers also indicated that the iPhone 5 and iPad mini are expected to sell well in China. The Chinese government is expected to issue LTE licenses in the second half of 2013, which could coincide with a deal between Apple and China Mobile, the world's largest carrier.

Morgan Stanley has a price target of $714 for AAPL stock and has maintained its "overweight" rating. The company's "bull case" forecast for Apple sees its stock price reaching as high as $980 in the next 12 months.
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Comments

  • Reply 1 of 66


    Of course they are. 


     


    It's the Apple Experience in a new iPhone and a new iPad. 

  • Reply 2 of 66
    sflocalsflocal Posts: 4,128member
    Doesn't matter. Idiot fandroids and iHaters that infest/pollute this forum will continue spewing their lies on how bad the mini and iP5 has been.
  • Reply 3 of 66
    It's only a matter of time before some of these PC companies start declaring bankruptcy. Who will be first?
  • Reply 4 of 66


    No, no, no, AAPL can't take anymore success!!

  • Reply 5 of 66


    "Doesn't matter. Idiot androids that iHaters that infest/pollute this forum will continue spewing their lies on how bad the mini has been."


     


    Well said.  By which I mean wow, troll unintelligibly much?

  • Reply 6 of 66
    gazoobeegazoobee Posts: 3,754member
    I find the mini to be an amazing product. Much better than the original iPad. It hardly seems to me that they are even related to each other given that the experience is so different, and so much better on the mini.

    Anyone who disses the mini has no idea what they are talking about IMO.
  • Reply 7 of 66


    The Mini is a stroke of genius. 


     


    It's mirroring the success of the iPod "family of products."

  • Reply 8 of 66


    Quote:

    Originally Posted by Quadra 610 View Post


    The Mini is a stroke of genius. 


     


    It's mirroring the success of the iPod "family of products."




     


    sad, but true.. image


     


    image

  • Reply 9 of 66
    Not surprised. After using my iPad mini for more than a week, I'm very happy and could care less about Retina.. Most wont notice, much less understand.. I wouldn't mind it in next model, but it's not a deal breaker for me. I never bought into retina when it came out anyway.

    What will the average person experience? it's light, it's small, it's great for reading.. Not if it's a little more granular than paper.

    Tech critics are sitting with their microscopes and stats pages. All the while; customers are more interested the overall experience from the size/weight/battery life and the app ecosystem.

    Thats what is selling it in record numbers.
  • Reply 10 of 66
    @sflocal, if you don't like the negative Apple comments here, steer clear of the Yahoo! Finance AAPL message board. Brutally ugly there.

    Having bought my first Mac in 1986, and stuck with Apple exclusively since then, I've seen all kinds of Apple-related doom and gloom. I have to say, however, it's never been this loud, this pervasive, and, frankly, so often tone-deaf.

    The criticisms of the iPad mini's display is an ideal example. Critics' cries that the display is worse than the display on the iPad 2 aren't paying attention to the actual specs, and I have to assume they haven't yet actually looked at the iPad mini in person.

    The screen size is _smaller_, making the same pixel count denser. While admittedly not Retina quality, the mini's pixel density makes for a nice improvement over the iPad 2.

    I'm not a die-hard Apple fan these days, but it seems quite clear to me that Apple has a lot of runway left. The smartphone market has not been saturated, modern tablets are just hitting stride, and if one believes a bit of what they read, Apple has its eyes on the living room...and quite possibly they're angling toward deeper integration (read revenue) into our automobiles.

    *Update: I wanted to add a link to this article, that suggests that 1/3 of PC users faced with the question of whether or not they'll upgrade to Windows 8 say they're going to switch to Mac. That translates into a lot of new Mac users...and a lot of potential iPod, iPhone and iPad buyers, too:

    http://www.usatoday.com/story/tech/2012/11/14/poll-shows-us-consumers-hesitant-windows-8/1700585/

    Apple's future - for this and many other reasons - is quite bright, in my opinion.
  • Reply 11 of 66


    Wait. I thought the ship was sinking???


     


    /s

  • Reply 12 of 66
    wizard69wizard69 Posts: 12,468member
    I'm not surprised at all. It is a bit perplexing to see people dismiss the Mini based on its size when its size is exactly what makes it attractive.
  • Reply 13 of 66
    "Apple's iPhone, iPad mini sales even stronger than expected"

    Regardless, If "THE MARKET" decides this company's stock is worth $380, it will be $380.

    (I hate "THE MARKET")
  • Reply 14 of 66
    sflocalsflocal Posts: 4,128member

    Quote:

    Originally Posted by cherrypop View Post



    @sflocal, if you don't like the negative Apple comments here, steer clear of the Yahoo! Finance AAPL message board. Brutally ugly there.

    Having bought my first Mac in 1986, and stuck with Apple exclusively since then, I've seen all kinds of Apple-related doom and gloom. I have to say, however, it's never been this loud, this pervasive, and, frankly, so often tone-deaf.

    The criticisms of the iPad mini's display is an ideal example. Critics' cries that the display is worse than the display on the iPad 2 aren't paying attention to the actual specs, and I have to assume they haven't yet actually looked at the iPad mini in person.

    The screen size is _smaller_, making the same pixel count denser. While admittedly not Retina quality, the mini's pixel density makes for a nice improvement over the iPad 2.

    I'm not a die-hard Apple fan these days, but it seems quite clear to me that Apple has a lot of runway left. The smartphone market has not been saturated, modern tablets are just hitting stride, and if one believes a bit of what they read, Apple has its eyes on the living room...and quite possibly they're angling toward deeper integration (read revenue) into our automobiles.

    *Update: I wanted to add a link to this article, that suggests that 1/3 of PC users faced with the question of whether or not they'll upgrade to Windows 8 say they're going to switch to Mac. That translates into a lot of new Mac users...and a lot of potential iPod, iPhone and iPad buyers, too:

    http://www.usatoday.com/story/tech/2012/11/14/poll-shows-us-consumers-hesitant-windows-8/1700585/

    Apple's future - for this and many other reasons - is quite bright, in my opinion.




    I'm totally in agreement with you.  I believe most that criticize the iPad mini (both iHaters and media) and never actually seen one in person.  I have and I was literally blown-away by the quality, polish, and overall finish of the product.  Those criticizing the non-retina display are just a bunch of a$$hats spewing nonsense out of their mouth.  Is it as nice as a retina? No.  Is it better than an iPad 2?  Hell yes.  Most people (except ADHD-afflicted fandroids) will not have a single issue with the display.  I have an iPad3 and it still took me a little bit to realize the lower resolution of the mini's display.  The pixels are condensed in a smaller area so naturally it will look sharper.  It's a non-issue.  In addition, the idiots out there seem to conveniently leave out that a retina-display would mean a bigger battery, heavier unit, power-sapping GPU to drive that dense display, which would then give them more fodder to criticize Apple.



    My next iPad will most likely be a mini.  I'll probably wait next year simply because I'm more than happy with my 4-month old iPad3, and have zero need to get a new one.



    iHating is more a (louder) problem now than back in the 90's simply because the Internet has given these blowholes easier methods to spread their vile crap, and in a more louder way.  Damn shame really.  

  • Reply 15 of 66


    Is this another analyst trying to create overblown expectations again, in order to manipulate the stock as always…?


     


    I just find them utterly unreliable anymore, both their predictions and their motives...


     


    It's clear though, given Apple's consistent performance trends over the last four quarters that this one is going to be a blowout. The stock is also clearly undervalued, especially considering the state of the market and their competitors...


     


    I know more than a few people who are delighted at the opportunity to buy in at the current price. They pretty confidently see themselves doubling their investment with 12 months… possibly in as little as half that time.


     


    Meanwhile, regardless of all the right-wing-flavored Apple bashing going on over at Yahoo (their regular news comments are equally harsh in general, so I think it's just a magnet for those kinds of folk), every single person I know that has put their hands on an iPad Mini has bought, or is going to buy one. Every single one has said basically, "it would be cool if the screen were higher res, but it's fine as-is…it's in no way a deal-breaker, and I'll take the longer battery life over the higher res any day…"


     


    That from roughly a dozen people so far… and about half of them are trying to "buy a few" as gifts too… it's going to be a huge seller this season.


     


    Here's a number to get your head around… extrapolating the expected numbers for the next two quarters, Apple will be on track to sell nearly 300 MILLION iDevices over the next 12 months…. that's just extraordinary. 

  • Reply 16 of 66


    I had decided not to buy an iPad mini both because it was >$300 and had no Retina display.  However, after seeing one in person, I've revised that decision and will be buying one on Tuesday--if I can find one!  Now I just have to decide between black or white and 16GB or 32GB...

  • Reply 17 of 66
    gtrgtr Posts: 3,231member
    quadra 610 wrote: »
    The Mini is a stroke of genius. 

    But it's just a big iPod Touch...that's added the ability to make calls...been enlarged...had the phone features removed...then shrunk again!

    Apple is Doomed, etc, etc...
  • Reply 18 of 66


    Wow!! Add another 60 million iDevices to the 100 million out there! What a powerful mass of users to write apps for! 


     


    While the Android market may seem to be bigger it's really a whole lot of screen sizes and geometries as well as every OS version from infinity and beyond.


     


    On another note, that the mini is eating into PC sales like it is, says that Microsoft, entrenched in PC OS, Xbox, and tablets for consumers, is backing fading/dying markets. We are into the post-PC era, dedicated game counsels are so last-decade, and few want Windows 8 on their phone or tablet. If enterprise doesn't adopt Windows 8, what else is there but servers and Office?

  • Reply 19 of 66
    I have to admit, the iPad mini is awesome. Now I have to re-order that LTE version.
  • Reply 20 of 66
    rogifanrogifan Posts: 10,669member
    As far as manipulating the stock.....that's already happening, Down another $11 today. PE at just under 12 when google is at 20, Microsoft is at 14 and Amazon is at 2,626! Ridiculous.
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