Three Guys and a Podcast: Apple News & Analysis
Analysts have been coming out of Cupertino lately, ratcheting up their iPhone sales figures. The Street predicts roughly 29 million iPhones will be sold for the quarter, while AT&T's CEO recently commented on seeing a record number of iPhone sales for the December quarter being highly likely.
But there are some in the industry claiming iPhone sales will not reach into the stratosphere due to supply chain issues. Notably a "key component" unable to be produced in a large enough quantity to meet demand. Of course, as is typical with such rumors, the key component that is under supply constrain is unknown. Riddle me this: How can Ashok Kumar of Rodman & Renshaw know about a specific component that is having production issues, but not know what that component is? Please...
The pace at which demand is pulling for iPhone, coupled with Apple launching the iPhone 4S world-wide (70 countries by year's end), best estimates are that Apple could sell 40 million iPhones in the December quarter. I find that extremely reasonable, but not likely. If there is any grain of truth to any component inventory being held up, it could severely restrain sell-through.
Hedging a bit, reasonable number seems more along the lines of 32 million iPhones sold during the December the quarter, being wall street's numbers by roughly 4 million units, or approximately $2.6 billion. What this will do to Apple's stock price, who knows. Apple seems a puppet of the market lately, completely disconnected to their actual results. Here's to hoping the market rewards Apple's quarter and shows renewed confidence in their abilities to continue as a growth story.
Disclosure: Mark Reschke Apple stocks, and is long on Apple. Mark Reschke is not making any financial recommendations, and is only providing personal commentary.
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