Last Quarter’s iPhone Shipments May Have Set New Record
Morgan Stanley released its latest prediction for iPhone shipments via a recently released investor note. The firm had previously predicted that there would be 62 million units sold of the new iPhone models. But later it had updated its forecast to 67 million.
Whether Morgan Stanley's prediction rings true or not, the number they came up with will certainly trump the current record for iPhones sold, which numbers 51 million units, sold in the final quarter of 2013.
What makes Morgan Stanley so confident in its prediction? The firm has observed that the demand for the iPhone 6 and the iPhone 6 Plus has far overwhelmed the supply as the year 2014 ended.
Indeed, the supply of the new iPhones only just recently caught up with the demand. It has only been in January of this year that Apple's website was able to display all models of the iPhone 6 and the iPhone 6 Plus in all colors and internal storage capacities and for all major wireless carriers in the United States.
What makes the fourth quarter of 2014 so significant is that it marks the first full three months of sales of the new iPhone models. Furthermore, the last quarter of the year fell on holiday season, which is generally considered by most to be the strongest quarter for many a retailer in terms of sales.
It is also about the right timing. The release of the new and bigger-screened iPhones allowed Apple to directly compete with Samsung's Galaxy lineup, which also features smartphones with generous display screen sizes. Based on Morgan Stanley's analysis, it appears that Apple's decision to increase the display screen sizes of its flagship devices is all worth it.
As for the current quarter that will end in March, Morgan Stanley sees some signs that may indicate that Apple is heading towards another banner quarter. For instance, it appears that Apple suppliers are currently in the process of producing more than 52 million units and who knows maybe even more in order to increase the existing inventory.
As for Apple's first and only wearable device (so far), the Apple Watch, Morgan Stanley also predicts that during the current quarter, 3 million units of the smartwatch will be shipped. This number would be roughly equivalent to $1.4 billion in sales revenue for Apple.