RBC sees Apple selling upwards of 75M 'iPhone 6' units before end of 2014
Apple has apparently placed a massive amount of orders for its next-generation iPhone, prompting RBC Capital Markets to notify investors on Monday that they see great upside potential for the anticipated "iPhone 6" over the coming quarters.
While analyst Amit Daryanani currently forecasts sales of 56 million iPhones in the December quarter, he said in a note to investors, obtained by AppleInsider, that a more bullish scenario sees the company possibly shipping more than 70 million units in a three-month span.
According to Daryanani, supply chain data suggests Apple is asking its suppliers to produce as many as 80 million "iPhone 6" units before the end of the year in two form factors of 4.7 inches and 5.5 inches. In comparison, last year Apple had its supply chain ramp up for 60 million units.
Now Daryanani says it's possible that Apple could sell 10 million "iPhone 6" units on the device's launch weekend, reaching 15 million total units before the end of the September quarter. Apple is expected to unveil its next iPhone on Sept. 9, and if the company follows its traditional launch schedule, the handset would become available on Friday., Sept. 19.
That sales momentum would carry into the December quarter, where Daryanani sees upside potential for around 60 million iPhone units. That would place Apple at sales of 75 million "iPhone 6" units before the end of 2014.
To put the numbers in perspective, Apple's biggest quarter ever came last December, when the company sold a blockbuster 51 million total iPhones. The company does not break down sales of handsets based on specific models.
But Daryanani expects a "notable uptick" from last year, as Apple is expected to cater to new users with its larger iPhone displays. The company's current 4-inch iPhone 5s and iPhone 5c represent some of the smallest handsets on the market, while Android-powered competitors have been trending toward larger displays.
RBC Capital Markets has maintained its "outperform" rating for AAPL stock along with its $110 price target.
While analyst Amit Daryanani currently forecasts sales of 56 million iPhones in the December quarter, he said in a note to investors, obtained by AppleInsider, that a more bullish scenario sees the company possibly shipping more than 70 million units in a three-month span.
According to Daryanani, supply chain data suggests Apple is asking its suppliers to produce as many as 80 million "iPhone 6" units before the end of the year in two form factors of 4.7 inches and 5.5 inches. In comparison, last year Apple had its supply chain ramp up for 60 million units.
Now Daryanani says it's possible that Apple could sell 10 million "iPhone 6" units on the device's launch weekend, reaching 15 million total units before the end of the September quarter. Apple is expected to unveil its next iPhone on Sept. 9, and if the company follows its traditional launch schedule, the handset would become available on Friday., Sept. 19.
That sales momentum would carry into the December quarter, where Daryanani sees upside potential for around 60 million iPhone units. That would place Apple at sales of 75 million "iPhone 6" units before the end of 2014.
To put the numbers in perspective, Apple's biggest quarter ever came last December, when the company sold a blockbuster 51 million total iPhones. The company does not break down sales of handsets based on specific models.
But Daryanani expects a "notable uptick" from last year, as Apple is expected to cater to new users with its larger iPhone displays. The company's current 4-inch iPhone 5s and iPhone 5c represent some of the smallest handsets on the market, while Android-powered competitors have been trending toward larger displays.
RBC Capital Markets has maintained its "outperform" rating for AAPL stock along with its $110 price target.
Comments
When the device is released it will be analyzed to death, dissected, inspected, torn apart, and finally declared ho-hum by the tech illuminati. The usual suspects will declare it insufficient, disappointing, falling behind, not innovative. Apple will be doomed once again.
Then, miraculously, Apple will actually sell those 75 millions units they ordered manufactured and the illuminati will be left scratching their heads in befuddlement once again, followed by the now required meme of “Only stupid people buy overpriced Apple junk!”
75 million in four months?
Why is this person not fired? I want him out on the street, his paper box full of possessions thrown out the door after him. I want to see him curled up on the corner with a cardboard sign “Will short stock for food”.
Yet still some here dont believe.
For those of you just tuning in to AI for the first time and don’t know he’s joking, remember that in 2011, the whole world knew Apple was releasing the iPhone 4S and iPhone 5 simultaneously.
I dont think anyone can come out with reliable predictions until we see what the phone actually is. How many models? How will they price the 5c?
1. Nothing has been announced
2. We know nothing about it
3. Price?
4. Rollout?
Headline around January 23rd, 2015:
"Apple only sells 72 million phones, not the 75 million anticipated. RBC downgrades AAPL to a sell."
Let's throw the guesses out the window and make a prediction that's certain to be right:
That Apple will sell boatloads of all devices this fall and will break sales and revenue records in the process, all while stealing away sales from all the other vendors who rely in bigger screens as a selling point.
...For those of you just tuning in to AI for the first time and don’t know he’s joking, remember that in 2011, the whole world knew Apple was releasing the iPhone 4S and iPhone 5 simultaneously.
And I miss the days when I was excited and surprised when Apple announced something. Now, there isn't any surprise except for the final configuration because every "expert" has detailed every possible configuration and product so nothing will be unexpected. Of course, the market will expect every one of these proclamations to be correct so they'll see anything short of the most magnificent mobile device ever released to be less than their expectations, driving the value of AAPL down.
When the device is released it will be analyzed to death, dissected, inspected, torn apart, and finally declared ho-hum by the tech illuminati. The usual suspects will declare it insufficient, disappointing, falling behind, not innovative. Apple will be doomed once again.
Then, miraculously, Apple will actually sell those 75 millions units they ordered manufactured and the illuminati will be left scratching their heads in befuddlement once again, followed by the now required meme of “Only stupid people buy overpriced Apple junk!”
Add to that list: All newly added innovations will be dismissed as copies of some halfassed implementation on some totally unrelated device which existed at some point in history and had nothing to do with anything anywhere.
The whole world is saying 5.5 coming.
Yet still some here dont believe.
Just remember last year when everyone was waiting for cheaper iphone and everyone was wrong.
I'm pretty sure there's no 5.5 inch iphone, no NFC support, no ultra-retina display and...
Headline around January 23rd, 2015:
"Apple only sells 72 million phones, not the 75 million anticipated. RBC downgrades AAPL to a sell."
And what would be the error in that? If the stock is valued (and it has been climbing steadily) at the price anticipated of them selling 75 million units, it is obviously worth less if they only sell 72 million.
All other factors held constant, any company that sells 72 whatevers is worth less than its equivalent that sells 75 whatevers.
So many here complain when the stock dips when Apple doesn't meet expectations, but I see very few complaining that the stock price is now going up....
And what would be the error in that? If the stock is valued (and it has been climbing steadily) at the price anticipated of them selling 75 million units, it is obviously worth less if they only sell 72 million.
All other factors held constant, any company that sells 72 whatevers is worth less than its equivalent that sells 75 whatevers.
So many here complain when the stock dips when Apple doesn't meet expectations, but I see very few complaining that the stock price is now going up....
If Apple sells 72 million units it will be an unprecedented number, well beyond the expectations of any reasonable person.
The only way your scenario plays out (based on my comment) is if the stock price is above $140 on the day that Q1 2015 is announced.
But hey, that's Wall Street. The game is not built for the little guy to win.
The whole world is saying 5.5 coming.
Yet still some here dont believe.
I don't believe it even still I want it.
Apple won't sell above 75M units, not even close if there's no 5.5" announced this Fall.
And I miss the days when I was excited and surprised when Apple announced something. Now, there isn't any surprise except for the final configuration because every "expert" has detailed every possible configuration and product so nothing will be unexpected. Of course, the market will expect every one of these proclamations to be correct so they'll see anything short of the most magnificent mobile device ever released to be less than their expectations, driving the value of AAPL down.
Yes, Apple can still surprise you by releasing a product 6 months after they announce it. That will give competitors enough time to copy and surpass it. Original iPhone and iPad were exceptions because no one even had anything like those or close to those on a market and it takes time to develop a product. Now, everyone has something similar and all they have to do is improving it. Apple will not surprise you by announce a product early. Those days have gone. Move on.
You're kidding, right? So guesses out weigh facts and actual data?
I'm not joking.
I'm 99% certain we will see a 5.5 phone in the next 3 months.
What about a bet that you won't post a message in AI if 5.5" version is not coming in the next 3 months? Other way around, I won't post any. Deal?