iPhone and iPad Sales: This time of the year, there is always a lot of discussion regarding sales during the holiday season. This morning, for example, we brought you a story about Apple Inc. (NASDAQ:AAPL) sales in Japan over the holidays.
According to Mark Moskowitz of J.P. Morgan, sales were above average for the iPhone 5 during the holiday rush. That being said, iPad sales were not quite as strong due to problems with supply.
As first noted by AppleInsider, Moskowitz has released some data based on “his team’s research.”
Here is a quick overview:
“Mark Moskowitz of J.P. Morgan said on Thursday that his team’s research indicates near-term supply constraints affected iPad sell-in activity through the end of November.”
“Moskowitz had previously forecast sales of 20.1 million iPads in the December quarter, but he has now trimmed that estimate to 18.4 million units.”
It is a shame to think that the Apple Inc. (NASDAQ:AAPL) iPad did not reach higher sales figures due to supply issues. However, this appears to be exactly what happened. In turn, it has forced many analysts, such as Moskowitz, to decrease estimates.
Moskowitz added the following:
“While lighter iPad units could frustrate investors, we believe the miss is explainable. In our view, it was a supply — not demand — issue.”
In other words, this had nothing to do with the number of people who actually wanted to purchase an iPad. Instead, it was based on Apple Inc. (NASDAQ:AAPL)’s inability to keep up with production. Moving forward, this is obviously a major concern and one that people should be keeping an eye on.
What about the iPhone 5? Is there a demand issue? Not according to Moskowitz? The same article goes on to explain:
“While the iPad number could be soft, Moskowitz, like other analysts, dismissed recent concerns that iPhone demand could be waning. That sentiment, which pushed Apple’s stock below $500 this week, was driven by an article from The Wall Street Journal that alleged iPhone component orders were drastically reduced in response to weakened demand.”
“Earlier this week, Moskowitz dismissed that and other reports as just “noise” that would fuel an investor overreaction. On Thursday he stood by that sentiment, and reiterated his belief that any order cuts could mean that iPhone 5 manufacturing yields are improving.” “Moskowitz has forecast sales of 47.9 million iPhones in the December quarter.”
Moskowitz also feels that gross margins could recover faster than others expect, which could have a positive impact for Apple Inc. (NASDAQ:AAPL) stock moving forward:
“In our view, many investors have been locking in gains on Apple and reducing the relative weighting of the stock in their funds because it was difficult to defend a stock where gross margin declines were expected in the coming year.”
J.P. Morgan has reduced its 12-month price target to $725.
What are your thoughts on this information from Moskowitz?
Check back here for more updates on iPhone and iPad Sales.
DISCLOSURE: I have no positions in any stock mentioned.
For more Apple news stories, visit these pages:
A Lighter Full-Size Apple Inc. iPad Coming Soon?
