Tiernan Ray reports for Barron’s, “Shares of Apple are up 75 cents, or 0.7%, at $117.22, after Susquehanna Financial Group’s Chris Caso this morning raised his price target on the shares to $135 from $120, and reiterates a ‘Positive’ rating, writing that his ‘checks’ suggest that ‘Apple is producing as much of the iPhone 6 Plus as they can’ but that ‘iPhone demand is still exceeding supply.'”
“Apple appears still not to have found the peak in demand, opines Caso, as lead times haven’t change all that much for delivery of the phones,” Ray reports. “[Case writes], ‘following a fresh round of checks post the iPhone 6 launch, we continue to expect 60-65 mln iPhone unit production in C4Q, which is consistent with consensus forecasts of 63-64 mln iPhone and our 61 mln iPhone shipment forecast. Importantly, we believe the mix of iPhone 6 Plus has increased, we believe approaching 50% of production in 4Q amid strong demand for the larger phone and improved supply. At this point, we believe AAPL is producing all they can, and our checks suggest AAPL has reallocated capacity from some of the legacy models to the iPhone 6 Plus. It’s important to note that quoted delivery times for both iPhone 6 and 6 Plus have largely not changed since the phones were launched in September indicating that demand remains ahead of supply. We view the mix of iPhone 6 Plus to be a very important driver of AAPL profitability, since the profitability of the 6 Plus is so much higher than iPhone 6.'”
Read more in the full article here.
If the new data out on iPhone 6 is to be believed, it outsells the 6+ by six to one.
And what’s going on with APPL since noon today. Crazy!!!