Bluefin: Apple iPhone, iPad sales ‘strong’; may beat Wall Street expectations this year

“Analysts John Donovan and Steve Mullane of boutique shop BlueFin Research Partners today write that trends for Apple‘s (AAPL) iPhone and iPad are ‘strong,’ based on their checks, and that Taiwan Semiconductor Manufacturing (TSM) may enjoy some higher level of business making the company’s ‘“A-series’ processors for the devices, given what appears to be production stumbles at Samsung Electronics,” Tiernan Ray reports for Barron’s.

“Samsung, Apple’s long-standing manufacturing partner for the A-series chips, has been having some yield issues with parts made using the latest, 20-nanometer chip manufacturing process — which would presumably find their way into forthcoming models of the devices — the authors contend, citing their ‘checks’ of Samsung’s facilities in Austin, Texas,” Ray reports. “The authors think that the iPhone 5S is doing better in the market than the Street believes, suggesting sales this year of the iPhone could reach 172 million to 177 million, versus what they believe to be the average Street estimate for 160 million to 164 million.”

Ray reports, “With respect to the iPad, the authors argue that ‘the impact of the iPad Air will continue to swell in 2014 and we are tracking 1H iPad units at closer to 35-36M, with 2H14 demand at 44-47M.'”

Read more in the full article here.


    1. Actually, you should check back on Apple’s past and see that this tactic does not work for Apple. (It may work for others, but it has not worked for Apple.)

      In fact, at one point (back in the dark days), Apple came out mid quarter with an advisory that was slightly downgrading its profit projections. The stock dropped by nearly 50% in one day. (These numbers and timings are approximate as I’m working from memory.)

      When Apple came out with its final numbers after the end of the quarter it only missed its *original* projections by about 10%. Did the stock go back up? Did it even go back up to 75% of its original value (prior to the mid quarter advisory)? ABSOLUTELY NOT.

      Seems any projection from Apple other than something ridiculously high is met with a sell off of the stock. Unless Apple forecasts and meets a compound annual growth rate of 20+% across the board for both revenue and profit the Wall Street idiots are going to proclaim that Apple is dying. (YKBAID)

      1. I think that the majority of quarterly reports (with good or bad news) from Apple results in a drop of stock value. I thinks it’s attributed to three factors:

  1. As Apple gets bigger and bigger a 15% increase will mean it is adding revenue and profits in enormous amounts. Soon they will have done a $100 billion buy back and still have over $100 billion in the bank.

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