Apple Inc. Setting New Record For June Quarter [REPORT]

Apple is expected to report a new breaking record in terms of iPhone sales for the third quarter by an analyst at Wells Fargo Securities citing the reason that the tech giant added 16 new carriers since the latter part of April.

Analyst’s estimate

Wells Fargo Securities analyst Maynard Um estimated that Apple (NASDAQ:AAPL) sold around 36.5 million iPhones during the three month-period that ended in June. His estimate is significantly higher than the 31.2 million iPhones sold by the tech giant in the same period a year earlier.

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He noted that the Apple already have 332 carrier partners including the 16 newly added iPhone carriers since the end of April. In addition, the tech giant also introduced that iPhone in four countries including Brunei, Lebanon, Kazakhstan and Kosovo.

Um recognized the fact that the newly added carrier partners and the new countries likely contributed just small number to the total iPhone sales of Apple for the quarter. The analyst emphasized that the Apple’s promotional activity of drove the sales growth for the iPhone.

During the three month, Um also estimated that Apple sold 12 million iPads, 3.9 million Macs and 1.9 million iPods. In addition, he estimated that the tech giant’s gross margin was 38.3%, higher than its guidance between 37% and 38%.

Um predicted that Apple will deliver $38.2 billion in revenue, higher than the average $37.9 billion in revenue estimated by Wall Street analysts. He also predicted that the iPhone and iPad maker would generate earnings of $1.27 per share compared with the $1.22 per share consensus Street estimate.

Um remain bearish on Apple’s long-term prospects

Um stated that he is still bearish on the long-term prospects of Apple despite his expectations that it would be able to achieve a record-breaking iPhone sales for the quarter.

He explained that remaining opportunity in the smartphone market is slim, and it is for the low-end devices. The opportunity is not well-suited for Apple because it does not have low-end smartphones.

He maintained his Market Perform rating for the shares of Apple with a price target in the range of $86 to $96 per share. The stock is trading $93.52 per share on Wednesday, around 1:38 in the afternoon in New York.

Apple is scheduled to release its third quarter financial results on July 22.