Several analysts downplayed concerns about Apple Inc.’s iPhone X production issues and were bullish on demand and sales, pushing the company’s shares to a record on Monday, Reuters reports.
The Cupertino-based company does not provide pre-order figures on iPhones, leaving investors and analysts in the dark in trying to track output through research with its suppliers, consumer surveys and other industry indicators.
But positive commentary from analysts on Monday signaled strong demand for the pricey device with pre-orders starting this past Friday.
Apple is scheduled to report quarterly results this Thursday. The company provides sales figures in its results.
Since the launch of new iPhones on Sept.12, the stock had fallen 2.5 percent until last Thursday’s close. They rebounded on Friday after Apple said pre-orders for the 10th anniversary phone were “off the charts”.
The stock climbed to US$168.07 earlier in the session, adding nearly US$26 billion to its market cap and inching it closer to becoming the first company with a trillion dollar valuation. Shares pared gains and were up 1.9 percent at US$166.15 mid-day.
Daniel Ives, a well-known sector analyst, raised his forecast on Monday for pre-orders by 10 million, and several other analysts talked up sales over the next year.
In a note, Ives of research house GBH Insights, raised his pre-order demand expectations for the iPhone X to 50 million units from 40 million, calling the first stage of the iPhone X release a “stellar success”.
“With the official launch of iPhone X in Apple retail stores slated for this Friday, Nov. 3, we anticipate very high demand globally with limited supply of iPhone X on hand,” Ives said.
Jeffrey Kvaal from brokerage Nomura Instinet, said Apple and US wireless carriers’ pushing out of delivery times for iPhone X orders to 5-6 weeks was longer than for previous phones and pointed to strong demand.
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