Apple Inc. (NASDAQ:AAPL)’s almost 1.5% up in pre-market and its price has stalled at the $97.67 value. Investors seem to be very optimistic ahead of the third quarter earnings, which will be available after the close. Also, as of today, some 220,000 cash registers throughout the US will be adapted to process Apple Pay transactions, according to Bloomberg.
Credit Suisse Group AG (ADR) (NYSE:CS) foresees growth in sales of about 45% for Apple Inc. (NASDAQ:AAPL) in the next two years. Despite the tremendous popularity of the Cupertino designed devices, these are really huge numbers. According to Statista, the company sold about 35.2 million iPhone devices during the third quarter 2014 and this number is expected to be 51.04 million for the same period in 2016. It’s difficult to imagine where such growth will come from, but there are certain signs that don’t allow disproving the theory right over.
“The bigger screen iPhones appeal to people in Emerging Markets who want one device that can take care of their tablet needs and phone needs,” informed Scarlet Fu.
However, this will also drive down Apple Inc. (NASDAQ:AAPL)’s iPad sales, if the slump hasn’t actually begun. On the bright side of the story is the fact that despite some cannibalistic behavior in terms of sales growth for the iPhone 6 Plus with respect to tablets, the margins from these devices are larger than on other products.
“You know, it’s funny because Credit Suisse also says in its note that the replacement cycle should speed up with this latest round of the iPhone 6 and 6 Plus and the average selling price is because of these gigantic phones, on which they haven’t lowered the price, goes up 3 – 4%. That will eventually mean an 11% increase in revenue in 2014 and a 26% increase in revenue in 2015,” said Scarlet Fu.
Assuming that competition will not be capable of bringing Apple Inc. (NASDAQ:AAPL) to its knees, there’s huge growth awaiting the tech mogul.
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