Apple Inc. (NASDAQ:AAPL)'s launch of its new iPhone 5 model in China this week was met with initial sales of over two million units, which RBC Capital Markets has declared as “A positive as the company continues to outpace the previous iPhone 4S launch.” The launch will most likely lay the foundations for a successful December quarter.
RBC Capital Markets, as a result, stuck with its current rating of ‘Outperform’ for Apple Inc. (NASDAQ:AAPL), as well as its price target of $750.
Meanwhile, analysts at Wells Fargo & Company (NYSE:WFC) see a strong opening of the iPhone 5 in China as an indicator that Apple Inc. (NASDAQ:AAPL) is on track to either meet or surpass the Wells Fargo’s previous estimate of Apple shifting 46 million units over the December quarter. Wells Fargo sees potential in some drop-off after the strong sales of the holiday quarter, but regardless also maintains a rating of ‘Outperform’ and a valuation range between $710 and $730.
The company believes that the iPhone 5 will soon become “the largest product cycle in consumer electronics’ history,” also stating that Apple’s brand, innovation, and ecosystem, are “unmatched” within the industry – and is sure to result in the continuation of Apple taking value share across its various core markets.
However, Wells Fargo did see some potential risks for Apple in the near future including the risk of slowed growth due to tough comparisons, or disruptions caused by legal disputes. The company’s report, which was released in late November, also mentioned “evolutionary versus revolutionary steps in innovation” as a potential cause for concern.
Following the strong launch of the iPhone in China, Apple Inc. (NASDAQ:AAPL) made a statement to the press touting the successful launch – the first time the company has ever done so for sales in the region.
The news prompted a surge in Apple’s stock throughout Tuesday, reaching highs of $532.54 per share. At the time of writing Apple Inc. (NASDAQ:AAPL) was valued at $528.56, up by 1.87 percent.