iPhone sales to continue sliding until next iPhone
Sales of the iPhone have likely slowed down since Apple’s historic record shattering Holiday quarter, and the slowdown is expected to continue all the way by the launch of the new iPhone, expected in the third quarter of 2012, according to analysts from Canaccord.
The latest sales data from carriers seems to confirm the slowdown. Back in Q4 2011, Verizon Wireless sold 4.3 million iPhone, while in the first three months of 2012, the number slipped to 3.2 million.
“Our recent channel checks indicate modestly slowing iPhone 4S sell-through trends in developed markets,” Canaccord analyst Mike Walkley wrote. “We have lowered near-term iPhone unit estimates, but we have increased our F2013 iPhone estimates as we anticipate very strong demand for an LTE iPhone 5 ramping during the December quarter. We maintain our belief Apple is well positioned for strong sales and earnings growth driven by new product introductions across its portfolio.”
This led to Walkley raising his target for Apple stock to $740, and holding by a “Buy” rating. The analyst expects Apple to post strong results on Tuesday, but he gave a lower earnings per share estimate for fiscal 2012 of $43.13, down from $44.58.
source: Canaccord via BGR