Despite the buzz that Apple Inc. (NASDAQ:AAPL) has cut orders for iPhone parts, Piper Jaffray research analyst, Gene Munster, said in his latest research report that Apple expected to report sale of 50 million iPhones in December’s quarter, five million units more than Piper Jaffray’s earlier estimates. His reason: stronger demand for the phone during the holidays. He said about five million iPhone unit sales will shift from the March to December quarter.

Apple

Munster said Apple Inc. (NASDAQ:AAPL) will give a conservative guidance for the March quarter, implying 32-34 million iPhone unit sales. But the company can easily sell 38 million units during the quarter. Apple is expected to beat Wall Street estimate of $54.6 billion in revenues and $13.34 of EPS. Piper Jaffray expects the Cupertino, California-based company to report a revenue of $57 billion with $13.73 in earnings.

The analyst predicts Apple’s March revenue guidance to stand at about $41 billion, close to 13 percent lower than Wall Street estimate of $46.9 billion. He said that Apple’s revenue guidance for the past three quarters have been 6-13 percent below Wall Street estimates. Munster maintains his Overweight rating on Apple with $875 price target, despite fierce market competition and recent cut in iPhone parts orders.

Recently, AT&T Inc. (NYSE:T) suggested that iPhone sales grew slightly on Y-o-Y basis, and Verizon Communications Inc. (NYSE:VZ) said that Apple iPhones helped it reach record activations in December. So, about 15 million iPhones could have been easily sold in the United States in December alone. Munster said Apple will throw light on the recent component order cuts.

iPad sales are expected to be 25 million units in December, the first quarter of iPad Mini sales. iPad Minis are selling in full swing, and many stores reported stock outs for the 16GB model before the holiday season began. So, supply constraint could affect the iPad sales in December.

Gene Munster analysed the NPD retail data for the December quarter, and noted that Mac sales dipped 14 percent on Y-o-Y basis. He expects 4.8 million mac sales in December.

Overall, 54 percent of Apple Inc. (NASDAQ:AAPL)’s revenues come from iPhones, 23 percent from iPads and 12 percent from Macs.