Boston, MA 11/24/2014 (wallstreetpr) – Apple Inc. (NASDAQ:AAPL) is expected to see a surge in the sale of its popular products in the festive season. That has always been the case even in the past years except that this time around analysts expect to see bigger sales figures. However, analysts are also highlighting that Apple could witness an almost drastic decline in the sales of iPhones after the festive season, according the Business Insider.
According to Ming-Chi Kuo, an analyst with KGI Securities, Apple Inc. (NASDAQ:AAPL) could sell as many as 72 million iPhones in 4Q, signaling nearly 82% uptick QoQ. That figure will combine the new release – iPhone 6 and iPhone 6 Plus as well as the older iPhones. However, Kuo expects iPhone 6 to lead in sales. In fact, he believes that iPhone 6 will almost always lead the sales when compared with the larger model – iPhone 6 Plus.
Even in the future, Kuo sees a sales ratio of 2:1 in favor of iPhone 6 against iPhone 6 Plus. That does not necessarily mean that customers are not buying more of the larger model but because of the supply chain issues. It is cited that suppliers face some issues with the production of the larger device.
Kuo goes further to state that Apple Inc. (NASDAQ:AAPL) will see a significant decline in its iPhone sales after 4Q. He expects sales of nearly 50 million iPhone units in 1Q. Usually, sales tend to decline in the quarter that immediately follows the busy holiday shopping season. That tradition is expected to hold for Apple but in a much bigger way this time around.
As for the future sales at Apple Inc. (NASDAQ:AAPL), Kuo stated that the company might discontinue certain iPhone models, especially the entry-level devices. Such devices include iPhone 4S and iPhone 5C. He foresees the discontinuation happening as early 2015. Still, promotional activities are expected to eat into the selling price of the iPhone products. In the future, Kuo sees Apple offering 5C free under contract.
Apple Inc. (NASDAQ:AAPL) made a top of $117.57 on 21st November’2014 and the stock is seeing some selling pressure. Currently the stock is trading above its 20-Day which stands at $111.38. The RSI of the stock is 81.20. The immediate support for Apple Inc. (NASDAQ:AAPL) is $114 and $110.