The iPhone is Apple Inc. (NASDAQ:AAPL)’s best-selling product and it looks like the device is about to break sale records once again. Morgan Stanley (NYSE:MS) analyst Katy Huberty shared the results of the most recent AlphaWise Smartphone Tracker survey with investors in a research note. She explained the data results through the end of May demonstrate the significant demand for iPhones during the June quarter.
A look at shipment numbers
During last year’s June quarter, Apple Inc. (NASDAQ:AAPL) shipped a total of 31.2 million iPhones, and the year before that, Apple sold 26 million units. The AlphaWise surveys are often a useful indicator of market demand. In fact, these surveys have been more accurate than Wall Street’s consensus estimates in four out of the last five quarters.
Last quarter showed a unusually strong demand for Apple’s iPhone. The unexpectedly high demand was attributed to carrier promotions and worldwide expansion. Apple Inc. (NASDAQ:AAPL) shipped a total of 43.7 million phones in 2Q, which was closer to Morgan Stanley (NYSE:MS)’s estimate of 40.6 million units than the market watchers’ prediction of 38 million.
Wall Street’s consensus predicts Apple Inc. (NASDAQ:AAPL) will sell 35 million iPhones, and Morgan Stanley’s prediction is again higher. Huberty speculates an upside from iPhone units adding $2.8 billion in revenues during the quarter which would be an 8%bump from her expectations. She added that the supply chain build often lags market demand even when production ramps down near the end of product cycle. This quarter will be similar to the March quarter as major promotions are expected to increase demand.
Exciting products from Apple coming soon
Later on this year, Apple Inc. (NASDAQ:AAPL) will likely debut the iPhone 6/iPhone Air along with the highly anticipated iWatch. There is a real possibility that 2014 will be a huge year for Apple, especially after a confirmatory tease from Apple’s chief executive officer Tim Cook and senior vice president Eddy Cue during an event in Austin, Texas. The executives teased by mentioning that Apple has some exciting products in the near future.