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Apple Inc. (AAPL) Set Up For A Strong Holiday Quarter

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Apple Inc. (NASDAQ:AAPL) may deliver strong results during the holiday quarter, according to analysts at Cantor Fitzgerald. They report that their Apple Barometer suggests “a strong hand” from the company, the successful ramp-up of the iPhone 5S and a positive iPad Air launch on Friday.

Apple Inc. (AAPL) Set Up For A Strong Holiday Quarter

Apple may post record sequential growth

Analyst Brian J. White’s Apple Barometer uses data from top suppliers in Taiwan which receive a high percentage of their sales from Apple Inc. (NASDAQ:AAPL). He looked at preliminary sales data for October from several companies and says it suggests record month over month growth for Apple.

According to White, about 96% of October sales have been accounted for in their Apple Barometer, and they’re estimating that those sales increased about 11% month over month. That’s significantly over the October average of flat performance month over month over the last eight years. This is why White believes this year October will bring the strongest results in the history of their Apple Barometer.

Apple stands strong for the December quarter

He believes Apple Inc. (NASDAQ:AAPL) is in a good position for the holiday quarter and anticipates strong demand for the company’s products, particularly the iPad Mini with Retina display, which is expected to launch by the end of this month. However, he suggests that supply constraints may remain.

The analyst believes the new iPad Mini will be available for purchase no later than Black Friday, which is Nov. 29. However, many are expecting it to be available the week before then.

Is a new product from Apple around the corner?

GT Advanced Technologies Inc (NASDAQ:GTAT) announced a deal with Apple Inc. (NASDAQ:AAPL) this week that has Apple investing in a new facility to increase manufacturing for sapphire material. White believes this means there will be innovative new products in the pipeline, including “small form factor” devices in the high end segment. He sees the rumored iWatch “as a strong candidate for sapphire.”

The analyst continues to rate Apple Inc. (NASDAQ:AAPL) as a Buy with a $777 per share price target.

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