Apple (AAPL) iPhone 5S Sales Strong, iPhone 5C Steady; Estimates Raised - Canaccord Genuity

November 14, 2013 10:23 AM EST
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Canaccord Genuity analyst Mike Walkley raised estimates and reiterated a Buy rating and $580 price target on Apple (NASDAQ: AAPL) following strong feedback from his October/November global handset survey.

"Our October/November surveys indicated continued strong sales of the new iPhone 5s, as it was by far the top selling smartphone at all four tier-1 U.S. carriers and at most channels where the smartphone launched globally," Walkley said. "Further, our surveys indicated much improved iPhone 5s supply and availability for the silver and space grey iPhone 5s models versus September levels. By early November, a number of stores at the four tier-1 carriers had the popular 16GB and 32GB silver and space grey iPhone 5s SKUs in-store and those that didn't have these models indicated an average waiting/back-order period of 3 to 5 business days or down from the initial 1 to 6 weeks waiting periods following the iPhone 5s launch in late September. The popular gold-colored iPhone 5s, however, remains in short supply with wait times ranging from 10 days to over a month with the duration of the wait varying across carriers and also dependent on the consumer's memory preference for this SKU."

The firm's surveys also indicated steady iPhone 5c sales with the smartphone's color options and more affordable price point proving popular with its intended audience.

On the iPad, the analyst noted very strong initial sales for the iPad Air launched on Nov. 1 but iPad mini with Retina display supply constrained.

Walkley added, "... we anticipate Apple will gain smartphone and tablet market share gains during the December holiday quarter. Our Oct/Nov global surveys indicated very strong demand with improved supply for the Phone 5s and steady iPhone 5c sales with share losses for other leading Android OEMs."

The analyst increased his 2014 and 2015 Annual EPS estimates to $44.48 and $48.78, respectively. He also increased his 2014 and 2015 Annual Revenue estimates to $184.8B and $197.0B, respectively.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $520.63 yesterday.

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