Analysts react to Apple's iPhone 5s and 5c launch weekend sales
After Apple's Monday morning announcement of record-breaking sales for Cupertino's newest flagship iOS devices, sentiment among analysts is generally positive.
With more than nine million iPhone 5s and 5c units moved in the phones' first weekend of availability, analysts review their estimates and revise price targets for Apple's stock, though few alter ratings.
Gene Munster, Piper Jaffray
Sales numbers are higher than expected, but that may be due to retained inventory rather than sales to consumers.
Target: $640.00
Rating: Overweight
"We had been expecting 5-6 million units as sell-through and note that the 9 million unit weekend number includes sell-in of the 5C. Our adjustment for the sell-in implies opening weekend sell-through of around 5.5 million units. We believe the 5.5 million sell-through number compares to the 5 million iPhone 5 units sold last year (Apple sold out of initial stock) and view the 5S/5C launch as a solid start. We note that iPhone 5S demand throughout opening weekend appeared to be stronger than iPhone 5 demand last year."
Ben A. Reitzes, Barclays
iOS 7 appears to be driving sales of new iPhones, while sales numbers are even more encouraging due to iPhone 5s supply constraints.
Target: $525.00
Rating: Overweight
"We find it interesting that Apple is also positively revising its guidance while the quarter is still about a week away from closing. We do not recall this type of pre-announcement ever happening and it seems that it implies a message from management that the company is back on track.
The announcement is quite positive considering supply of the iPhone 5S is also significantly constrained at this point, as demand has exceeded the initial builds. Apple also announced 200 million customers have migrated to iOS7 and the rollout has been the 'fastest software upgrade in history.' The new OS is clearly driving sales as well."
Steven Milunovich, UBS
Sales figures seem strong at first glance, but may be tempered by weaker-than-expected demand in key growth areas.
Target: $520.00
Rating: Neutral
"The 5c appears less popular than the 5s with its advanced technology, at least among early buyers.
The first weekend numbers are encouraging though with wider availability and product cycles seemingly compressing it is difficult to know how far to extrapolate the figures. The response in China appears muted. In addition pricing programs from China Telecom and Unicom are not as accommodative as originally thought."
Timothy Arcuri, Cowen & Company
Apple confounds sales expectations and validates iPhone 5c market targeting strategy.
Target: $550.00
Rating: Outperform
"AAPL announced BMO that it sold ~9MM new iPhone 5S/5C over the weekend with more than 200MM iOS devices being updated with iOS7. This compares to ~5MM iPhone 5 and ~100MM iOS6 downloads in the first weekend of launch in September 2012. This is roundly better than our ~7MM expectation (some peers were still saying 5MM as recently as this morning) and, we think, also materially better than buy side expectations of ~7-8MM (see our note from midday Friday). We think this result validates Apple?s decision to maintain focus on profitability vs market share."
With more than nine million iPhone 5s and 5c units moved in the phones' first weekend of availability, analysts review their estimates and revise price targets for Apple's stock, though few alter ratings.
Gene Munster, Piper Jaffray
Sales numbers are higher than expected, but that may be due to retained inventory rather than sales to consumers.
Target: $640.00
Rating: Overweight
"We had been expecting 5-6 million units as sell-through and note that the 9 million unit weekend number includes sell-in of the 5C. Our adjustment for the sell-in implies opening weekend sell-through of around 5.5 million units. We believe the 5.5 million sell-through number compares to the 5 million iPhone 5 units sold last year (Apple sold out of initial stock) and view the 5S/5C launch as a solid start. We note that iPhone 5S demand throughout opening weekend appeared to be stronger than iPhone 5 demand last year."
Ben A. Reitzes, Barclays
iOS 7 appears to be driving sales of new iPhones, while sales numbers are even more encouraging due to iPhone 5s supply constraints.
Target: $525.00
Rating: Overweight
"We find it interesting that Apple is also positively revising its guidance while the quarter is still about a week away from closing. We do not recall this type of pre-announcement ever happening and it seems that it implies a message from management that the company is back on track.
The announcement is quite positive considering supply of the iPhone 5S is also significantly constrained at this point, as demand has exceeded the initial builds. Apple also announced 200 million customers have migrated to iOS7 and the rollout has been the 'fastest software upgrade in history.' The new OS is clearly driving sales as well."
Steven Milunovich, UBS
Sales figures seem strong at first glance, but may be tempered by weaker-than-expected demand in key growth areas.
Target: $520.00
Rating: Neutral
"The 5c appears less popular than the 5s with its advanced technology, at least among early buyers.
The first weekend numbers are encouraging though with wider availability and product cycles seemingly compressing it is difficult to know how far to extrapolate the figures. The response in China appears muted. In addition pricing programs from China Telecom and Unicom are not as accommodative as originally thought."
Timothy Arcuri, Cowen & Company
Apple confounds sales expectations and validates iPhone 5c market targeting strategy.
Target: $550.00
Rating: Outperform
"AAPL announced BMO that it sold ~9MM new iPhone 5S/5C over the weekend with more than 200MM iOS devices being updated with iOS7. This compares to ~5MM iPhone 5 and ~100MM iOS6 downloads in the first weekend of launch in September 2012. This is roundly better than our ~7MM expectation (some peers were still saying 5MM as recently as this morning) and, we think, also materially better than buy side expectations of ~7-8MM (see our note from midday Friday). We think this result validates Apple?s decision to maintain focus on profitability vs market share."
Comments
Is the furnace running?? I feel a lot of hot air blowing.
Utterly clueless pap.
I truly pity the foolish investors who buy into this.
Watch this and laugh:
http://video.cnbc.com/gallery/?video=3000201502&play=1
Simply amazing and almost unbelievable
12 million next year then?
Lots of sad analyst self-justification for completely missing the mark, as expected.
Watch this and laugh:
http://video.cnbc.com/gallery/?video=3000201502&play=1
what a moron... $300 for apple in the future. even Google or MS have higher EPS than apple would have at $300. and this guy keep saying apple is failing to innovate. I bet the last thing this guy innovated landed in a toilet
Apple did awesome. But I think the 5c sales show that the 5c might be overpriced. I think Apple could have made it about $50-$100 cheaper and it would have done a lot better. There is no reason for the 5c to ever be priced the same as the 5s (which happens at the $200 level).
Although that may be part of Apple's upsell strategy, and low 5s yields are the driver behind them marketing the 5c so heavily.
Apple could have:
Sold all of their existing inventory for less money
Lowered their overall margins,
Injured the brand
Produced less profit for the company and shareholders
What were they thinking?
Apple did awesome. But I think the 5c sales show that the 5c might be overpriced. I think Apple could have made it about $50-$100 cheaper and it would have done a lot better. There is no reason for the 5c to ever be priced the same as the 5s (which happens at the $200 level).
Although that may be part of Apple's upsell strategy, and low 5s yields are the driver behind them marketing the 5c so heavily.
Who in the world is qualified to lecture a company on pricing when they sold 9M phones in one weekend? You? Really? Are you not capable of changing your narrative and admitting that you are wrong?
Watch this and laugh:
http://video.cnbc.com/gallery/?video=3000201502&play=1
$300 is the price where they will settle (what's that, a P/E of 6?)????? Margins are too high? What ecosystems exist outside of the US that are better than iCloud/iTMS/OSX.... Apple must beware of the Blackberry scenario... David Pogue and the USA Today control the market, not Wall Street (Kramer).
Peter Misek is the optimist of the 2... Now that's funny
Amazing.
Total idiots. A fair price for AAPL is 300? And he says that's about where Google and MIcrosoft are?
Maybe he should look at P/E as one metric. At 300, Apple's forward, cash adjusted P/E would be about 5. How in the world could he possibly justify that price?
"implies a message from management that the company is back on track"
Wake up. The company was never off track. The message is that you all stink at trying to figure out what Apple is up to and consistently underestimate them. The only think off-track is the share price.
Thanks for the video hydr. I think it is insane that the analysts would in the same breath talk about Apple and Blackberry as if they have anything in common. Wow!!! Just Wow.
Were these guys previously weatherman ?
Let's recap. ANALysts expected sales of 5 million but sales were actually 9 million. Then ANALysts downplay the great sales and saying it may be something else?
I live outside of Houston and the nearest space gray 64g 5s I can get from an apple store or AT&T is in some place in Mississippi. Does that seem like retained inventory or consumers actually buying the phones?
The SEC needs to act on these idiots.
Haters are gonna hate. That's their job right. I shouldn't be surprised.
Why people listen to those folls?
OH!, just look at talking heads on TV.
Who in the world is qualified to lecture a company on pricing when they sold 9M phones in one weekend? You? Really? Are you not capable of changing your narrative and admitting that you are wrong?
My narrative?