Apple's record setting iPhone 6s launch weekend impresses Wall Street

Posted:
in AAPL Investors edited September 2015
With more than 13 million units sold in the first three days of availability, the iPhone 6s and iPhone 6s Plus exceeded most market expectations, and analysts responded on Monday by reacting favorably to the announcement from Apple.




Maynard Um of Wells Fargo issued a note to investors, a copy of which was provided to AppleInsider, in which he calculated that the iPhone 6s launch figures were up by units-per-country. Apple expanded launch availability to 12 countries this year, but the 13 million sales work out to 1.08 million units per country, compared to 1 million per country for last year's iPhone 6 debut.

To Um, the strong first-weekend sales of the iPhone 6s and 6s Plus imply that December units will be up year over year, besting the first full quarter of the iPhone 6. Some on Wall Street had expressed concern that Apple may not be able to stimulate continued sales growth with this year's "S" upgrade cycle.

Wells Fargo has maintained its "outperform" rating with a "valuation range" of $125 to $135 for AAPL stock. The firm wasn't alone in heaping praise on Apple on Monday --?joining with positive reactions were Piper Jaffray, FBR & Co., and RBC Capital Markets.

To analyst Daniel Ives, the 13 million sales achievement was a "bull case" number on Wall Street. He sees potential upside to Apple's December numbers, helping to lift what he called the "China iPhone black cloud" from over the company.

FBR continues to rate AAPL as "outperform" with a $175 price target.




And Gene Munster of Piper Jaffray noted that while the 6s is generally available in most Apple Stores he checked, while 6s Plus inventory is more constrained. Consumer demand for the rose gold model also appears to be high.

"Overall, we see opening weekend results, coupled with our read on sell-through, as a sign that the iPhone 6s cycle is off to a good start and continue to be comfortable with our 3% iPhone 6s cycle unit growth compared to the Street at flat," Munster wrote.

Piper Jaffray also advises investors to buy in to AAPL stock, with an "overweight" rating and price target of $172.

Despite the positive reaction, shares of Apple were down more than 1 percent in trading Monday afternoon, amid broader losses across the markets in the U.S.
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Comments

  • Reply 1 of 43
    rogifanrogifan Posts: 10,669member
    If Wall Street is impressed why is the stock not bucking the down trend today. Clearly Wall Street is looking at this from the demand side of the equation and thinking because China was included this year but not last year the number should be higher than 13M. Of course that's a silly way to look at it. Yes Apple needed to make sure it beat last years number but in order to do that you need to increase capacity which costs money. There's no point in spending tons of money increasing capacity that's only going to sit idle a month or two from now when peak demand has wained.
  • Reply 2 of 43
    The death-knell ringers are undeterred. They'll be saying that Apple is DOOMED because they didn't sell, say, twenty million on launch weekend.
  • Reply 3 of 43
    irelandireland Posts: 17,671member
    How Apple is doing on Wall St. has nothing to do with how well Apple is doing. It impresses Wall St. only because that suits them for now.
  • Reply 4 of 43

    Just one more fool's POV -- 5 years ago AAPL had an adjusted value of $40/share. Owning AAPL is a long game. The market isn't going to reward Apple for great performance in the short term. But over time, the value will rise, of the world's greatest and most successful tech company. 

     

    The only risks are the very risks the market is probably worried about -- what's the next earnings juggernaut for Apple after the iPhone? How can the company keep growing?

     

    I don't know the answer to that -- but I am confident enough that Apple will get 'er done.

  • Reply 5 of 43
    ireland wrote: »
    How Apple is doing on Wall St. has nothing to do with how well Apple is doing. It impresses Wall St. only because that suits them for now.
    Apple continue to beat their target every quarter and that matters. If the sale is a little slow, release another color option as the automobile industry called "Special Edition ".
  • Reply 6 of 43

    Wall Street is based on nothing. They no longer invest in making things or creating job based companies. They do nothing but move money around to collect fees.

     

    Who cares what they think?

  • Reply 7 of 43
    They sold n phones? We were looking for n 1 phones! Doom!
  • Reply 8 of 43
    melgrossmelgross Posts: 31,895member
    It's impressed Wall Street so much, that the stock is down a buck fifty now.

    Yeah, I know it's a down market, but stocks go up in a down market if Wall Street thinks there's a reason for it.

    Analysts are not Wall Street. Investors are, whether large funds or individual traders.
  • Reply 9 of 43
    melgross wrote: »
    It's impressed Wall Street so much, that the stock is down a buck fifty now.

    Yeah, I know it's a down market, but stocks go up in a down market if Wall Street thinks there's a reason for it.

    Analysts are not Wall Street. Investors are, whether late funds or individual traders.

    The big money sure seems to exhibit the same pump and dump strategy across the board these days.
  • Reply 10 of 43

    Wonder if any of the "Analysts" noticed TC said Sunday sales where not included in this number, and will be included in 1st Qtr 2016 numbers

  • Reply 11 of 43
    peteo wrote: »
    Wonder if any of the "Analysts" noticed TC said Sunday sales where not included in this number, and will be included in 1st Qtr 2016 numbers

    The mob says "sell" and they sell.
  • Reply 12 of 43
    kpomkpom Posts: 617member
    Quote:

    Originally Posted by peteo View Post

     

    Wonder if any of the "Analysts" noticed TC said Sunday sales where not included in this number, and will be included in 1st Qtr 2016 numbers


     

    The 13 million includes Sunday's sales. However, the FY 2015 numbers will only include part of the 13 million (Friday and Saturday). Whatever they sold yesterday is part of FY 2016.

  • Reply 13 of 43
    How many consecutive quarters?...Has Apple now exceeded sales expectations?
  • Reply 14 of 43

    Not enough emphasis has been placed on the # of additional countries that took the launch of the new product.  China is not a small market and i think its important to understand that Apple like any large corporation is very careful in how they do all of these announcements.

    While they beat their numbers by 3M+ from last year, i woudl be curious as to how much of their overall #s were in countries that were net new in terms of launch.  Lets be honest here. Apple is a master of marketing and will skew things in a fashion to ensure they get what they need to plod forward being seen in a positive light on most things....else it affects the massive machine that they are indeed.

     

    Analysts, news organizations et al will take the various bits of information available and present it in a positive, neutral and negative light depending on the nature of how they report.  e.g. Appleinsider generally has a leaning towards the positive with Apple.  This is just the reality of how teh various agendas work.  We do live in a capitalist society and i think its important for people to be informed and balanced in how they view 'news' nowadays.

     

    just my two cents.  

  • Reply 15 of 43
    ireland wrote: »
    How Apple is doing on Wall St. has nothing to do with how well Apple is doing. It impresses Wall St. only because that suits them for now.

    Exactly. Ever notice that Wall Street is either "Delighted" or "Disappointed" with Apple...which is way of distracting you from the fact in both cases their estimates were....Wrong!!
  • Reply 16 of 43
    Have any of you looked at Priceline and Amazon today? AAPL is doing (relatively) well.
  • Reply 17 of 43
    First weekend sales disappoint? Give me a break. No matter the macro forces impacting initial sales of iPhones, Apple is going to report a number decided upon weeks ago, no more, no less.

    All this handwringing over first weekend sales makes for good media fodder and office "pools" but nothing else

    In fact, to within 2.5% Apple already knows how many iPhones will ship/sell during the December quarter. They contracted for that number 4 - 6 months ago. Its the only way a JIT supply chain for such a complex product can function.

    God I wish someone knowledgeable about production and supply chain management would write about Apple's iPhone ramp.
  • Reply 18 of 43
    fallenjt wrote: »
    Apple continue to beat their target every quarter and that matters. If the sale is a little slow, release another color option as the automobile industry called "Special Edition ".

    If Apple's trend was limited to colors.... Samsung would have it made.
  • Reply 19 of 43
    Quote:

    Originally Posted by corn View Post

     

    Not enough emphasis has been placed on the # of additional countries that took the launch of the new product. 


     

     

    Because it doesn't matter.

     

    Apple won't reach supply/demand balance for a couple months at minimum.  Even if they didn't sell a single phone in China, it would have been sold elsewhere.  

  • Reply 20 of 43
    Looking at another record setting release, it's amazing how far some of these analysts have their heads up their posterior - if they blink they will be tickling their throat!
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