Analyst: Q2 iPhone Sales to Hit 42M, Blow by Wall Street Estimates

| Apple Stock Watch

Apple's second quarter iPhone sales will hit the 42 million mark, coming in above the market consensus of 38 million. That high number comes from Morgan Stanley analyst Katy Huberty who said everyone has been reading the supply chain information wrong.

42 million iPhones instead of 32? That's what Katy Huberty thinks is happening in Apple's Q242 million iPhones instead of 32? That's what Katy Huberty thinks is happening in Apple's Q2

Based on supply chain data, iPhone sales will be flat quarter over quarter, according to Business Insider. That's a misinterpretation, according to Ms. Huberty, because suppliers most likely ramped up parts production during the holiday quarter to push out extra inventory, and have scaled back some now. That could lead to a false impression that iPhone sales are dropping off.

She also sees new pricing packages from service providers as a potential driving factor in ongoing iPhone sales. Those packages may be a catalyst to drive up purchases.

To help back up her prediction, Ms. Huberty cited the AlphaWise Smartphone Tracker, which has a surprisingly good track record at predicting iPhone sales. AlphaWise has been off by 9 percent in Apple's fiscal 2013, whereas Wall Street has been off by as much as 18 percent.

Assuming she's right, Apple will be in good shape to report record earnings yet again.

Apple is currently trading at $534.53, up 3.13 (0.59%).

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42 million iPhones versus 38 million? That's some serious money for Apple's bottom line. If she's right, it'll be interesting to see how Wall Street responds: happiness for beating their estimates, or disappointment for not beating then enough.


Lee Dronick

That would be sweet!



Regardless, Apple will still be doomed. At least according to analysts and pundits.


Or it could be another analyst trying to pump and dump the stock


The Street will do its’ usual thing. Focussing on one small dust ball in a corner, they can’t see the mountain of solid gold in Apple’s house. So they will write endlessly about the dust ball as the mountain grows ever larger. One day the mountain will fall on them all and we shall be free of their pessimism.

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