On Thursday, Morgan Stanley (NYSE: MS) said its smartphone tracker indicates stronger than expected Apple iPhone demand from Apple Inc. (NASDAQ: AAPL) in the current quarter driven mostly by China as well as emerging markets.
Sell-through data that the tracker compiles using web search analysis, indicates demand of around 53 million units. This is above Morgan Stanley’s 50 million units revised estimate.
Analysts said in a note that importantly, demand has continued to beat expectations even though Apple is approaching the close of the current product cycle.
Morgan Stanley is also increasing its fiscal 2015 estimate for the Apple iPhone by 5% to 240 million units, and further increasing its fiscal 2016 estimate by 7% to 290 million. Added to this, Morgan Stanley also increased its Apple Watch estimates by 20% to 36 million units in the 1st twelve months from a previous 30 million.
The financial services corporation also increased its fiscal 2015 estimated revenue by 3 percent and its earnings per share (EPS) estimates by 4%. As per Morgan Stanley, iPhone records above average gross margins while the Apple Watch margins will over time improve.
Apple’s shares were slightly down in premarket trade, however they increased 18% in 2015 so far, compared to a 2.6% increase for the Dow Jones Industrial Average (DJIA).
MT4 Chart: Apple
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