No iPad Minis or iPhone 5s on Sale Today? No Problem! (AAPL)

November 23, 2012 11:48 AM EST Send to a Friend
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Following-up on an earlier article, Wells Fargo is out with some observations on Apple (Nasdaq: AAPL) over Black Friday sales.

According to the firm, Apple's deals are similar to that of 2011, with product range and discounts of 4 percent to 10.6 percent about in-line with last year. The firm noted that, "Early checks suggest demand continues to be robust with strong store traffic through the week and early Friday. Popular products based on our visits include iPad Mini, iPad 2, MacBook Air/Pro, as well as Lightning cables and adapter (we see high attach rates to these high margin accessories)."

Wells also noted that there were no promotions on the iPad Mini (both 3G and Wifi), but ship times of 2 weeks were flat with the firm's last check. The firm maintains that the iPad Mini is the "must have" item of the season and Apple is on pace to meet or exceeds Well's shipments expectations of 20.2 million iPad units for the calendar 2012 fourth quarter.

In addition to iPad Minis not being promoted, Apple is constant in not promoting its iPhone (in this case, the iPhone 5). Wells notes that shipment times on the device improved by 1 week to just 2 weeks now and it believes Apple is on track to ship 46 million or more iPhone units in the quarter.

Finally, Wells believes that, despite the devices not shipping, demand for Apple's new iMac is high. The firm commented, "We believe pent-up demand is high with the iMac not having seen a refresh since May 2011 (one of the longest stretches between new product upgrades for Apple)." For the quarter. Wells is modeling 1.15 million iMac units and 5.1 million total iMacs.

The firms has an Outperform rating on Apple with valuation range of $710 to $730. Shares of Apple are in positive territory today.


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