Apple (AAPL) Verizon Numbers Better-Than-Expected, But Mix a Concern - BMO
BMO Capital's Keith Bachman offered some comments on Apple (NASDAQ: AAPL) following Verizon's (NYSE: VZ) iPhone numbers.
Verizon sold 9.8 million smartphones in the December quarter, including 6.2 million iPhone units, which were modestly above the firm's 5.6 million iPhone estimate.
While better, the analyst notes mix is a concern. Despite launching late in the September quarter, the iPhone 5 contributed only 3.1 million units in the December quarter, or approximately 50%, he notes.
"We believe the lower mix of iPhone 5 units will put downside pressure on ASPs. In past product launches, the new generation of iPhone models would account for the vast majority of sales, which helped ASPs."
Despite the comments, the analyst is still positive on the stock. He reiterated an Outperform rating and price target of $640, saying he believes that Apple could meaningfully increase both dividends and buybacks, which would help support the stock.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $500.00 yesterday, with a 52 week range of $419.55-$705.07.
Verizon sold 9.8 million smartphones in the December quarter, including 6.2 million iPhone units, which were modestly above the firm's 5.6 million iPhone estimate.
While better, the analyst notes mix is a concern. Despite launching late in the September quarter, the iPhone 5 contributed only 3.1 million units in the December quarter, or approximately 50%, he notes.
"We believe the lower mix of iPhone 5 units will put downside pressure on ASPs. In past product launches, the new generation of iPhone models would account for the vast majority of sales, which helped ASPs."
Despite the comments, the analyst is still positive on the stock. He reiterated an Outperform rating and price target of $640, saying he believes that Apple could meaningfully increase both dividends and buybacks, which would help support the stock.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $500.00 yesterday, with a 52 week range of $419.55-$705.07.