Apple's (AAPL) China iPhone 5 Data Should 'Quell Investor Concerns' - Sterne Agee

December 17, 2012 7:24 AM EST
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Sterne Agee's Shaw Wu reiterated his Buy rating and $840 price target on Apple (NASDAQ: AAPL) Monday after the company announced over 2 mm iPhone 5's sold in its opening weekend in China.

"This is a strong number and should help quell investor concerns," Wu said.

The analyst notes that while the iPhone 4S sold was not disclosed, to put this in context, China Unicom pre-orders are up 50% to 300,000.

"We remain comfortable with our above consensus iPhone forecast looking for 47.5 million units for the December quarter. We continue to believe iPhone 5 is a significant update positioned to drive a powerful product cycle."

Commenting on investor concern about the lack of foot traffic at Apple's Beijing stores, Wu comments: "We believe these concerns are misplaced in that AAPL China implemented a new policy where a reservation is required to pick up new devices like the iPhone 5. This was implemented to deliver a better customer experience and in response to near-riots in previous years due to new product launches like the iPhone 4S, iPhone 4, and iPad mini."

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 $509.79 yesterday.

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