Morgan Stanley analyst sees continuing strong demand for the Apple iPhone

Morgan Stanley analyst sees continuing strong demand for the Apple iPhone
Morgan Stanley analyst Katy Huberty sees continued strong demand for the Apple iPhone, based on analytics devised from web search metrics. Huberty's AlphaWise system calls for Apple to sell 39 million units of the iPhone in the current three month period, which would be a strong 25% increase from the year earlier quarter. At 39 million units, the results would top the current consensus forecast for the period, by 4 million iPhones.

The analyst says that promotions from Apple, carriers and retailers are driving the demand for the device. In addition, earlier this year Apple released a lower priced 8GB version of the Apple iPhone 5c to sell in the emerging markets. Quarter-over-quarter growth for the iPhone is picking up speed in the U.S., Brazil and Europe.

Meanwhile, Huberty's work has discovered that Samsung Galaxy models will sell 41 million units in the current quarter, down 1% year-over-year. Declines have been seen in older and lower priced models. The Samsung Galaxy S5 though, will meet expectations this quarter with 20 million units of the flagship model predicted to be shipped.

source: Forbes

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56 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

If the iWatch is as capable (biometric sensors) as rumored, iP6 sales could be huge. Stay tuned.

29. Finalflash

Posts: 4061; Member since: Jul 23, 2013

I don't think so, the more and more I hear about these watches the more they seem niche to me. I don't think they will amount to much more than fashionable tech accessories (some aren't even that much).

40. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

The rumored specs of the iWatch that I am referring to are the blood oxygen and blood sugar level biometrics. If they add in cholesterol checking, that becomes even more compelling. Basically a whole category of standalone medical devices gets sent packing. Since the iWatch will be synchronized with the health app on an iP6, you will have to buy the whole package (iP6 + iWatch) to get the benefits. With an aging population in the U.S., there is a market waiting for the manufacturer who can offer a smart biometrics solution. The unknown is whether Apple can connect the dots. The blood oxygen, blood sugar and cholesterol measurement function makes the device subject to FDA regulation as a medical device, so there is a higher level of scrutiny that is applied as compared to a smartphone. As I posted in another thread, it is go big or go home time for Apple.

51. Droidrapist

Posts: 186; Member since: May 28, 2014

While you're right about most of that, since it is a SMARTPHONE and a smart WATCH Apple wouldn't need ANY FDA approval to launch the products. All they have to do is say the product is not approved by the FDA, and the biometrics are done as a secondary reference. I've mentioned this elesewhere on this thread, but not every medical solution has to go through the grips of the damn FDA. Look at medical marijuana for example.

2. darkkjedii

Posts: 30661; Member since: Feb 05, 2011

No surprise there, it's a great phone.

3. datphoneguy

Posts: 155; Member since: Sep 15, 2013

If it's so "great", then why does Apple & carriers need to offer special promotions for the phone (as the article states)?

4. gorkapr

Posts: 74; Member since: Aug 23, 2012

The gs4, htc one m7, lg g2 are great phone, and the wireless store sell it in a discount price, so do the math, if you want to take out your stock, you need to put it on a special price for the next generation...

11. datphoneguy

Posts: 155; Member since: Sep 15, 2013

Yeah, but all those phones are last gen. Are you saying the iPhone 5s (Apple's current model) is equal to HTC/LG/Samsung's last year models?

5. Sauce unregistered

Lol ok this might of been the most moronic inbred thing I've read in a long time...

6. darkkjedii

Posts: 30661; Member since: Feb 05, 2011

Google how many have been sold, and the customer satisfaction rate.

12. datphoneguy

Posts: 155; Member since: Sep 15, 2013

Why is the number sold relevant if Apple is having to push out discounts like all the other phone manufacturers? For a current model phone that's so great, it should be able to sell at full price no?

19. darkkjedii

Posts: 30661; Member since: Feb 05, 2011

Customer satisfaction rating. Didn't see that part of my post huh?

7. darkkjedii

Posts: 30661; Member since: Feb 05, 2011

Maybe, just maybe, you shoulda thought a little more before posting that.

22. frustyak

Posts: 247; Member since: Mar 08, 2010

Because the carriers are competing against one another for customers, and phone discounts bring in customers. It's not because AT&T, Verizon, and T-Mobile are having a hard time selling IPhones.

25. RoundhouseMcGee

Posts: 188; Member since: May 25, 2014

The carriers don't typically offer discounts/rebates/incentives to buy iphones because they don't make any money off of them. Apple greedily retains 100% of the sale. However, when the new one is about to launch they will simply to get rid of them before they take a bigger loss once apple drops the MSRP. Carrier stores actually would prefer you don't buy an iphone and get Android or WP instead. Retailers don't care either way since they make money on accessories.

28. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Greedy POS Patent Trolls

52. Droidrapist

Posts: 186; Member since: May 28, 2014

That is COMPLETELY false. Everyone buys iphones for the same cost. EVERYONE. Verizon, AT&T, Sprint, etc... and also Authorized Retailers, for which I work for. Everyone makes a ton of money selling iPhones because the money isn't on selling the phone but on the activation on the back end. After 6 months, the carriers pay out comission which equals whatever the retailer bought the phone plus their comission, plus the comission of the employees, minus whatever disocunts the retailer decided to impose on the phone to drive in sales. I work for Target Mobile and if it wasn't for our mobile sales last year, Target wouldn't have made any money because of the credit card security theft that happened with their Windows based point of sale registers. If it wasn't for Target Mobile their stock would have probably plumment. Selling phones makes loads of money, and we mostly sell iPhones cuz this isn't Wal Mart.

47. bigdawg23

Posts: 467; Member since: May 25, 2011

Based on that every Android is not a "Great". Seldom does anyone ever pay full subsidized price. The lower priced 5C is for emerging markets. Other countries and the US has 5S at your typical $199, $299 and $399 pricing. An no I am not a Apple iFan. I own a iPhone 5 and Note 3 so I can be open to both Android and Apple.

58. Droidrapist

Posts: 186; Member since: May 28, 2014

I own both as well because when a customer comes and ask me what phone I use and they're interested on Android, I show them Android, and when they want an iPhone I show them my iphone - tell them WHY I think its awesome. Although I do like my iPhone 5s better than S5. Such fast. Much reliability. So 64 bit. WOW. Anyway, we sell an 5c for $29. That's $70 cheaper than the carrier store, why? Because we want to drive in traffic for iPhones - because even if we pay $300 to Apple for a 5c and we only sell it for $29, at the end of the 6 moth term we will have a $650 comission. ALSO, because iPhone users are less likely to cancel than Android users so Target is willing to take a hit for iPhone customers in hopes that there is less charge backs, which there are. 5s iPhone is also cheaper typically $80-90 cheaper - the other day I PAID someone to get an iPhone 5s. It was 10% off on cart wheel from $119 to $108 and they traded their iPhone 4s for $115, PLUS they got an additional $25 if they traded in the phone so in the end I owed them around $25 so they got a case for their phone. Over all Target spent around $400 getting that new activation for that customer but more than likely they are gonna see it in the back end in 6 months because iPhone users stick around on their carrier.

59. Droidrapist

Posts: 186; Member since: May 28, 2014

And to clear up WHY iPhone users stick around on their carrier is beacuse they are much much harder to unlock. Most people dont' know that you can pay off site unlocking services, and think you have to unlock the bootloader (jailbreak) which is basically impossible on newer devices. Also because iOS 7 is so secure, if somene steals your phone, they can't go and activate it again - this forces all new iPhone users to purchase legitmate devices for the most part to activate service, which means signing a new contract. New contracts = more market trust for investors = higher stocks. Its a win win win for everyone. Except would be theives and people who whish to commit fraud.

60. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

You are an amazing loyalty Royally to Apple, and an iFan.

8. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Instead we get this "it's not you" drivel. We already know this. Apple has been marketing for the mainstream (not you) for years now. We already know the iphone 5C will sell well. It's a repackaged iphone 5 in colors. This, too, is obvious. But it's not what the crying and moaning has been about from some of the analysts. It's not why even iMore wrote an "i was wrong" column. Apple can market this as a new product instead of letting an old iphone 5 sit out there with little marketing because it's an old device. Many have wondered what took Apple so long. Buy by saying "it's not you" apparently iMore considers its audience not the mainstream (despite the glut of idiot buyers guides that followed the event by imore). . "It's not you..but hey..umm...here's what color you should get" lol

9. peace247 unregistered

Im an android fan too, but i don't get it why other android fans are so against iPhone. They should accept that iPhone is a good phone too as android flagships.

16. RoundhouseMcGee

Posts: 188; Member since: May 25, 2014

It's simple. Apple is the biggest patent troll, and the single biggest threat in the industry to consumers. Their business strategy is to ban, sue, and embargo the competition through shady and unethical practices , essentially removing choice from the consumer. A great product should sell on it's own regardless of competitor's products, not because it's the only option. Additionally, when they patent existing features used by the completion it stifles true innovation. FFS, an OEM cannot even make a phone with rounded corners without paying apple now. They patented a shape. THAT is why we despise them. They are the communists of the wireless industry. Should call it the 'WEphone', not the 'iphone'.

17. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Look whose here? The iPussycat. Look whose here? The lowlife iThug who steals and wants to rob other people's phones and gadgets, cause he can't afford to buy one, due to low income. Having difficulties to feed the family, he goes out and spends money on high end gadgets. Wth, lmao.

20. darkkjedii

Posts: 30661; Member since: Feb 05, 2011

Not whose, who's.

24. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Wow big deal. Do you want an iCookie? Wow funny that you spelled "its" when it's meant to be "it's" last time. Look who is trying to look for errors on other users, when 2 years ago you couldn't even write and spell properly... Lmfao.

31. bucky

Posts: 3771; Member since: Sep 30, 2009

I can't tell if your comments are trolling or you're just a child behind their parents computer. How have you not been banned yet?

33. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

This guy looks for trouble and bullies others, and that's OK? I pointed out what he was 2years ago, know I'm a troll? Lmao. So me hating disliking something, and expressing my thoughts and feelings is classed as trolling... Wtf. Are you sick or I'll? It's like if I hate and dislike fish, I'm a troll. If I hate dislike Ford, I'm a troll. Are you smoking iCrack?

42. ecmedic4

Posts: 520; Member since: May 02, 2013

Your a troll because you do nothing on this site but bash and trash Apple and ppl that have a personal preference for Apple products. If you don't like Apple so much, then don't click Apple articles, don't pay any attention to them or their fans. Your one of the worst trolls on here, you constantly have to throw jabs at Apple no matter what the article is about or what your comment is about. All of your silly "iCrack, iCookie" i this and i that makes you look very immature. You are still able to buy any phone you like, and its no one else's business what phone you do buy, just like its none of your business what others like and buy. No single phone is perfect for everyone. Hating a phone is stupid, its an inanimate object, and especially stupid when you don't even HAVE to buy one or use one. Im like bucky, you should be banned, as your rude and offensive and only on here to incite fanboy wars. I prefer Apple products myself, i have several Apple products and they suit my needs just fine and I'm more than satisfied with them, but it doesn't mean I'm gonna sit here and bash you for liking something else, as I don't act like a small child, and this isn't the 3rd grade, its a website. You seriously need to grow up and act like a man your age.

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