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Apple Inc. Had A Strong April, According to Supply Chain Data

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Apple Inc. (NASDAQ:AAPL) reported record iPhone sales during the March quarter. But many investors have been concerned about the seasonally dull June quarter. Cantor Fitzgerald analyst Brian J. White said that the ‘Apple Barometer’ was stronger than the historical seasonality in April. ‘Apple Barometer’ comprises of the Asian suppliers that generate a large part of their revenues from the Cupertino-based company.

Apple Barometer sales up 7% MoM in April

White said in a research note that he expects more investors to get involved in the Apple Inc. (NASDAQ:AAPL) stock ahead of the next product cycle. Preliminary April sales for companies included in the Apple Barometer are much stronger than the historical seasonality. Preliminary sales rose 7% month-over-month in April. Historically, the April sales decline 1% MoM on average in the last nine years.

Cantor Fitzgerald expects Apple Inc. (NASDAQ:AAPL)’s current quarter sales to decline about 17% QoQ, which is almost similar to the 15% sequential decline in the past two years. Over the last nine years, the Apple Barometer has shown an average of 10% QoQ sales increase during the June quarter. That’s because the tech giant previously used to refresh its product cycle in May/June. Since the iPhone 4S, the company shifted its new iPhone launch from June to September/October.

Changes in product refresh schedule hurt Apple’s June quarter

Moreover, Apple Inc. (NASDAQ:AAPL) last year changed its tradition of launching new iPads in March/April by unveiling the new tablets in November 2013. These changes have negatively affected the company’s seasonality in the June quarter in the last two years. Brian J. White is confident that the big-screen iPhone 6 will be a blockbuster in China and everywhere else. Experts also expect the tech giant to enter new product categories this year by launching the much-rumored iWatch.

Cantor Fitzgerald has a Buy rating on the stock with $777 price target. Apple Inc. (NASDAQ:AAPL) shares have gained more than 31% over the past 12 months. The stock was down 0.21% to $591.10 in pre-market trading Thursday.

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