China finally overtakes U.S. in iPhone sales, Chinese revenue up 71%

Hangzhou Opens Second Apple Store

Pundits have been predicting for several successive quarters that iPhone sales in China would outstrip those in the U.S., and Q2 2015 was when it finally happened, reports Reuters.

Apple […] sold more iPhones in China than the United States for the first time […] increasing its revenue in the country 71 percent to $16.8 billion, although that was helped by gift-buying for Chinese New Year.

Tim Cook said that the iPhone was responsible for the bulk of Apple’s revenue in China, though he did also note that Mac sales were “unbelievable,” up 31% year-on-year. As with other markets, the iPhone is usually the first Apple product people buy, but that brings them into the ecosystem and boosts sales of other products …  Read more

Apple now selling more iPhones in China than in US, say analysts

apple-china

Tim Cook said in October that it was “just a matter of time” before China overtook the USA as its biggest market, and it seems that time may be arriving sooner than expected – at least as far as the iPhone is concerned. The Financial Times reports that analysts expect tomorrow’s Q1 earnings call to confirm that Apple sold more iPhones in China than in the US.

Analysts at UBS estimate that China accounted for 36 per cent of iPhone shipments in the most recent quarter, compared with 24 per cent for the US. During the same period last year, 29 per cent of units were sold in the US and 22 per cent were in China, UBS said.

The view was supported by Creative Strategies, which forecast that Apple has sold around 2M more iPhones in China than in the US in the final calendar quarter of 2014 (Apple’s financial Q1) …  Read more

Apple reportedly in ‘preliminary contact’ with distributors to bring iPhone to Iran

iphone6

The Wall Street Journal reports that Apple is in early talks with “Iranian distributors” to bring the iPhone to Iran:

Apple Inc. is in preliminary contact with Iranian distributors about a possible entry into the country should Western sanctions ease sufficiently, people familiar with the matter said.

The report notes that financial and banking sanctions as well as political tension has thus far prevented companies like Apple from conducting business in Iran, but points to a policy change in May that lifted the ban on sales of “consumer communications technologies” in the country. The report goes on the claim that “senior Apple executives” have already met with “potential Iranian distributors” at Apple’s regional headquarters in London. Read more

AAPL will announce record quarter, predict analysts, with earnings up 11.9%

apple-q4

Analysts are predicting that Apple (AAPL) will announce record sales and earnings in today’s fiscal Q4 (calendar Q3) earnings call, reports Fortune.

I’ve got the collected fiscal Q4 estimates of 33 Apple analysts — 21 professionals and 12 amateurs. They are all to a man (and one woman) predicting record Q4 sales and earnings (up 7.1% and 11.9%, respectively).

The analysts also expect earnings per share to be up 12% year-on-year, to $1.32 …  Read more

Analysts respond to AAPL earnings, rating the stock a strong buy

Photo: USA Today

Photo: USA Today

Early overnight reports collated by Fortune unsurprisingly show analysts pleased by the higher-than-expected iPhone numbers, with five out of five rating the stock a buy, their price targets ranging from $75 to $252 above yesterday’s closing value. Apple reported iPhone sales of 43.7B against expectations of 38B, and revenue of $45.6B against the consensus estimate of $43.5B.

  • Katy Huberty, Morgen Stanley: Price target $630

  • Gene Munster, Piper Jaffray: Price target $640

  • Brian Marshall, ISI: Price target $600

  • Brian White, Cantor Fitzgerald: Price target $777

  • Peter Misek, Jefferies: Price target $625  …

Read more

iPhone sales could be threatened as subsidized costs become more visible, say analysts

iphones

How much did your iPhone cost? If you said $199, $299 or even $399 you’re somewhere near $350 off. As some consciously forget, the carriers often shield the owner from the real total cost of the iPhone. That may not last.

iPhone sales could be hurt as carriers switch from so-called subsidized contracts, where customers pay only a fraction of the cost a new iPhone up-front, to deals where the true cost of the phone is more visible, argues a piece in the WSJ.

Many U.S. iPhone customers are not aware that the full cost of an iPhone ranges from $549 for a 16GB 5c to $849 for a 64GB 5s. The reason is that carriers have traditionally asked for only $0 to $200 up-front, hiding the balance of the cost in the monthly tariff. With carriers now switching to separate instalment costs for the phone, and the cost of upgrading every year or two more visible to consumers, analysts believe some will choose to upgrade less often …

Read more

Wall Street predicts just two percent year-on-year growth in iPhone sales

iphones

Fortune has its usual roundup of what the analysts are expecting Apple to report in iPhone sales next week, and the forecasts make worrying reading. The overall average is for quarterly sales of 38.2 million, which would represent year-on-year growth of just two percent.

averages

Adding to the concern, ten of the 32 analysts included in Fortune‘s poll predict a fall in sales when compared to the same quarter last year.

With the new iPhones having generated record sales in their opening weekend, and Apple having reported all-time quarterly high iPhone sales in Q1, the question is why the pessimism regarding Q2 … ?  Read more

Apple will announce 4M more iPhone sales than supply chain data suggests, says Morgan Stanley

Photo: digitaltrends.com

Photo: digitaltrends.com

Predictions of disappointing Q2 iPhone sales could be unduly pessimistic, says Morgan Stanley’s Katy Huberty. She expects Apple to announce that it shipped 42M iPhones in the first quarter of the year (Apple’s fiscal Q2), rather than the 38M suggested by supply chain analysis, reports Business Insider. This would represent year-on-year growth of more than 4.5M handsets.

Huberty says that the supply chain may work in overdrive during the holiday quarter to generate extra product, and then ease back in the March quarter, thus giving an unreliable read out on sales.

Huberty bases her estimate on a method which sounds eccentric but has an excellent track-record …  Read more

Analysts estimate Apple sold 55.3M iPhones last quarter, up 16 percent

fortune

With Apple due to report its earnings a week from today, Fortune has run its usual roundup on the numbers analysts are predicting.

The consensus among the 44 analysts we’ve heard from so far — 27 professionals and 17 amateurs — is unit sales of 55.3 million iPhones, up 16% from the same quarter last year.

It’s a near-certainty the numbers will be high …  Read more

Why iPhone longevity means iOS carrier activation share doesn’t resemble sales

2012-iphone4s-gallery2-zoom

There was a lot of confusion yesterday when Verizon’s results were discussed, with more than one commentator confusing activations and sales. For the record, what Verizon announced was that 51 percent of its activations were iPhone, not 51 percent of its phone sales.

If you doubt the importance of this distinction, I have one word for you: T-Mobile. As of 11th April, the carrier had two million iPhone activations. Its iPhone sales as of the same date? Zero: T-Mobile didn’t start selling iPhones until the following day.

The difference between the two numbers is particularly dramatic with high-end handsets like the iPhone …  Read more

Twice as many people buying iPhone 5s as iPhone 5c (latest claim)

cirp

With no word from Apple on the breakdown of its record-breaking iPhone sales between 5s and 5c (and no word expected during the company’s earnings call either), everyone is posting their estimates.

First to the punch was Localytics, who used iPhone connections to mobile and web apps to come up with an estimate of three to one in favor of the 5s. KGI’s Mingchi Kuo disagreed, using supply chain analysis to put the figures closer to 50/50, and suggesting that, if anything, sales of the 5c might be slightly higher. Now we have Consumer Intelligence Research Partners (via AllThingsD) using consumer surveys to suggest that the 5s is outselling the 5c two-to-one …  Read more

Are iPhone 5c sales low or supplies high?

Image: abcnews.com

Image: abcnews.com

KGI’s Mingchi Kuo, an analyst with a solid track-record, and the man who came closest (almost) to calling opening weekend sales of the iPhone, now believes Apple shipped ‘just’ 11.4M iPhone 5c handsets in September, rather than the 17M he had earlier forecast, reports Business Insider.

Kuo is now estimating Apple shipped 11.4 million 5Cs in the September quarter, a 33% drop from his original estimate. He also says he expects 5C sales to be just 10.4 million units for the December quarter, a 10% sequential drop.

This makes some sense of the rampant discounting seen on the 5C (which actually started at Walmart before launch), but doesn’t necessarily mean that iPhone sales as a whole are down …  Read more