Apple (AAPL) iPhone Unit Sales May See Upside; Wells Fargo Read-Through From Verizon (VZ)

July 18, 2013 11:31 AM EDT
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Verizon's (NYSE: VZ) iPhone activations suggest potential upside to Apple (Nasdaq: AAPL) iPhone unit estimates, said Wells Fargo's Maynard Um. Verizon noted a sequential decrease in iPhone sales, but it was less than last year.

"Verizon noted on its earnings call this morning, that iPhone activations were roughly 3.825mn for the quarter (vs. 4mn in the previous quarter and 2.7mn in a year ago quarter). The seq. decrease in iPhone units was only 4% vs. 16% Verizon saw in last year's Q2 and compares to the 31% seq. decline we are modeling in total iPhone shipments for the June quarter," said Um.

"The 3.8mn unit activations suggest Verizon will account for roughly 14.7% of our total iPhone units of 26mn versus the average of 11% of Apple's quarterly iPhone unit sales in last six quarters, which we view as positive (implies 34.7mn units using the average 11% Verizon mix in last six quarters vs our forecast of 26mn)," he added.

Wells Fargo has an Outperform rating on Apple.

For an analyst ratings summary and ratings history on Apple (NASDAQ: AAPL) click here. For more ratings news on Apple click here.

Shares of Apple closed at $430.31 yesterday.

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