Seeking Alpha

WSJ reports of big iPhone 6 orders ahead of Apple's earnings

  • Apple (NASDAQ:AAPL) has placed orders for 70M-80M 4.7" and 5.5" iPhone 6 units to be manufactured by Dec. 30, the WSJ reports. That's a sizable increase from the 50M-60M iPhone 5S/5C units Apple initially ordered last year.
  • Orders can change significantly based on consumer demand - for example, iPhone 5C orders were slashed, and 5S orders increased, following last year's launches. But the report still suggests Cupertino expects strong pent-up demandfor bigger iPhones. If accurate, it's a positive for Cirrus Logic (NASDAQ:CRUS).
  • A Taiwanese paper reported two weeks ago Apple had already put in orders for 68M iPhone 6 units. Prior to that, a report stated Foxconn is hiring 100K workers to help with iPhone 6 production.
  • The WSJ's report comes ahead of Tuesday's FQ3 report. With shares up 26% since the FQ2 report, expectations have risen a bit. UBS just hiked its Apple target by $15 to $115, and raised its FQ3 estimates above consensus on data pointing to a mix shift towards the 5S and iPad Air.
  • The firm is cautious about FQ4, noting checks point to possible iPhone 6 supply constraints for display-related components (previous: I, II). But it's also upbeat about FY15 margin gains, as capex growth slows and the impact of a 2013 revenue deferral policy change fades.
  • On average, analysts polled by Fortune expect 35.9M FQ3 iPhone sales, 14.4M iPad sales, and 3.9M Mac sales.
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Comments (18)
  • Mike Walker
    , contributor
    Comments (364) | Send Message
     
    Looks strong. Good until cancelled sell order at $142.86 on the books.
    22 Jul 2014, 01:02 AM Reply Like
  • Victor The Great
    , contributor
    Comments (40) | Send Message
     
    Stock strong until the iPhone 6 launch.
    22 Jul 2014, 08:36 AM Reply Like
  • ronfab1
    , contributor
    Comments (647) | Send Message
     
    Why the 86 cents tacked onto $142 rather than just rounding it off?
    22 Jul 2014, 01:05 AM Reply Like
  • AllgoodGuy
    , contributor
    Comments (397) | Send Message
     
    Split adjusted prices on options. We'll probably see those for some time in the future.
    22 Jul 2014, 02:54 AM Reply Like
  • Mike Walker
    , contributor
    Comments (364) | Send Message
     
    1000/7 = $142.86. My new lucky number.
    22 Jul 2014, 01:07 AM Reply Like
  • Victor The Great
    , contributor
    Comments (40) | Send Message
     
    That stock price will be a few years away if it ever hits that price.
    22 Jul 2014, 08:38 AM Reply Like
  • skyboy102
    , contributor
    Comments (287) | Send Message
     
    I love that when Steve jobs ran the company he would not let them do a larger iphone or a smaller ipad because he "knew" what the perfect screen size was. Good thing Tim cook did not follow in those foot steps.
    22 Jul 2014, 01:16 AM Reply Like
  • diaboliqueguan
    , contributor
    Comments (609) | Send Message
     
    @skyboy very good comment on Jobs! But you got to give it to him, that he knew Tim Cook (and the great team) is the best person to lead AAPL to another level.
    22 Jul 2014, 04:13 AM Reply Like
  • Budavar
    , contributor
    Comments (1396) | Send Message
     
    Superior management create
    superior strategies which bring
    superior profits.
    22 Jul 2014, 01:17 AM Reply Like
  • gelstretch
    , contributor
    Comments (2874) | Send Message
     
    No word of the iWatch.... this could be significant for revenue, if cross marketed with the iPhone6....Wow!
    22 Jul 2014, 02:00 AM Reply Like
  • Victor The Great
    , contributor
    Comments (40) | Send Message
     
    The iWatch is all hype. Who wears a watch today? Only people who wear it for flash.
    22 Jul 2014, 08:33 AM Reply Like
  • IGUART
    , contributor
    Comments (385) | Send Message
     
    And nobody (other then Apple people) thought the iPhone would take off. Or the iPad... heh even the iPod initially. But if Apple does what it always does and creates a "new need" for people to "want" then just maybe this will be huge.... maybe not, my bet is it will, especially if it goes in the direction I believe it to be. And since I am a watch person (whether for flash, fun, or health monitor-cycling) I'll be very interested in this. Viva la Difference!
    22 Jul 2014, 09:01 AM Reply Like
  • ChrisGriffith
    , contributor
    Comments (106) | Send Message
     
    Victor,
    If you keep an eye out for the number of people wearing jawbone, fitbit, or other fitness-related devices, you'll see that there is a large addressable market. Not saying that the iwatch will be a hit, but the market is much more than just "watch wearers"
    22 Jul 2014, 09:38 AM Reply Like
  • Victor The Great
    , contributor
    Comments (40) | Send Message
     
    I don't need to monitor my heart. My iPhone has more accurate time than my Rolex Daytona which is on my night stand in need of a wrist to work. I own 3500 shares of Apple and they don't need an iWatch or iTv to grow revenue and earnings. Apple needs to get into mobile search and greater content delivery.
    22 Jul 2014, 07:15 PM Reply Like
  • paparam
    , contributor
    Comments (27) | Send Message
     
    High expectations = Easy disappointment = sell off.
    That would be a good time to add to portfolio
    22 Jul 2014, 02:43 AM Reply Like
  • IGUART
    , contributor
    Comments (385) | Send Message
     
    Kind of like my first date... but I think Apple will bring it, unlike my first date! LOL
    22 Jul 2014, 09:02 AM Reply Like
  • cshoxie
    , contributor
    Comments (311) | Send Message
     
    Cautious about this cautious about that. Meanwhile the stock is up almost 200 points pre-split. Indecision is not always the key to flexibility.
    22 Jul 2014, 12:21 PM Reply Like
  • AllgoodGuy
    , contributor
    Comments (397) | Send Message
     
    The stock is up almost 300 points from its bottom about 13 months ago.
    27 Jul 2014, 03:57 AM Reply Like
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