As Apple Inc. (NASDAQ:AAPL) recently launched its iPhone 6 and 6 Plus, the tech giant had some ups and downs. However, both of the latest iPhones are doing remarkably well in the United States. Mike Walkey, who is the Apple Inc. (NASDAQ:AAPL) analyst at Canaccord Genuity, stated in his recent report that right now, the company’s iPhone 6 is by far the leading smartphone at T-Mobile (NYSE:PCS), Verizon (NYSE:VZ), AT&T (NYSE:T) and Sprint.
Furthermore, the second and the third place is also taken by Apple Inc. (NASDAQ:AAPL) products, with the iPhone 6 Plus in second place and iPhone 5s in third place. Both new Apple Inc. (NASDAQ:AAPL)’s iPhones caused the transfer of Samsung Galaxy S5 and LG G3 from second place in four of the mobile carriers and from third place in three of the mobile carriers respectively. According to Walkey, both of the new iPhones will be encountering very strong sales through the quarter of March 2015.
Walkey also pointed out that the large sizes of their screens will also result in an increased market share, since it has become pretty obvious that larger screens are preferable among consumers. However, the tech giant’s achievements do not end here, as the iPhone 6 became the best seller in Japan as well. Since the new iPhones are doing extremely well all over the world, the investors are eagerly awaiting to see the results in numbers, which will be revealed next week.
After the market close on Monday, October 20, Apple Inc. (NASDAQ:AAPL) will release its FYQ4, 2014 results. The results will also include the sales of the latest iPhone 6 and iPhone 6 Plus until September, so the investor expectations are quite high. Since the sales of the new iPhones have been strong all over the world, Wall Street expects that the company’s Q4 revenue will rise 6.30% from $37.47 billion to $39.83 billion. It is also expected that the earnings will go up from $1.18 per share (split adjusted) to $1.30 per share.
During the first weekend, Apple Inc. (NASDAQ:AAPL) sold an astonishing 10 million new iPhones. Considering that the initial release did not include China, this is an impressive number, since China is the world’s largest smartphone market. The iPhone 6 has finally been approved and will go on sale in China on Oct.17, after the release was delayed due to regulatory approvals. Goldman Sachs expects that the tech giant will sell 62 million iPhone units in December quarter, since the China launch will definitely boost Apple Inc. (NASDAQ:AAPL)’s performance in that particular quarter.
In his research note, Bill Shope, the Goldman Sachs analyst, said that the investors will especially be focused on December quarter’s gross margin guidance. Shope is expecting that both September as well as December quarter gross margins will stand at 37.9%. Furthermore, according to Goldman Sachs, the gross margins of Apple Inc. (NASDAQ:AAPL) may improve in the quarters that are yet to come. The improvement is expected because the sales of higher storage variants (64GB and 128GB) were higher than expected, cost reductions for standard components are consistent and especially because there is no sapphire display in iPhone 6.
Despite the fact that the new iPhones are not available in China yet, Apple Inc. (NASDAQ:AAPL) sold 10 million phones already. And since China is the largest market for the smartphones, it is expected that the number of iPhones sold will begin to rise with full power immediately after the sale in that country starts.
By: Janette Verdnik