Get Ready for Unprecedented Apple, Inc. iPhone 6 Sales

Get prepared for a big second half from Apple. At least that's what a look at the numerous reports pointing to a big iPhone 6 launch from Apple (NASDAQ: AAPL  ) this fall would suggest. And the reports aren't stopping. The latest comes from Taiwan's Business Weekly (via GforGames), making rounds in the media this morning.

4.7-inch and 5.5-inch iPhone 6 mockups pictured with the 4-inch iPhone 5s. Image source: 9to5Mac, used with permission.

Unprecedented production
Apple iPhone 6 orders from suppliers are apparently unprecedented. In fact, initial orders for the new iPhone are twice those for the iPhone 5 (68 million units), according to Business Weekly. The site claims that Apple has asked Foxconn and Pegatron to begin mass production this month.

Unfortunately, Business Weekly didn't specify whether or not the order is for both the alleged 4.7-inch and 5.5-inch device or for just one version of the iPhone 6. Either way, however, it signals unprecedented production for the latest-generation iPhone.


iPhone 5s.

Apple has big plans for the iPhone 6
For further perspective, consider that Apple sold 51 million iPhones during the first quarter of availability of the iPhone 5s and 5c. That was up just 6.7% from first-quarter 2013 iPhone 5 sales. So, doubling the initial order for iPhone 6 devices compared to the iPhone 5 would likely put Apple well-ahead of iPhone 5s and iPhone 5c deliveries, assuming the demand is there. Perhaps Apple is trying not to relive the same supply limitations it runs into with every iPhone launch.

While the added perspective from Business Weekly that Apple's initial order for iPhone 6 units may be twice the initial order for the iPhone 5 is new, it's no surprise that Apple appears to be betting big on the device.

Morgan Stanley analyst Katy Huberty said in May that, based on reports from Far East Apple suppliers, it appeared suppliers were gearing up for iPhone 6 sales that exceed iPhone 5s sales by at least 20%.

Further, iPhone suppliers Foxconn and Pegatron are reportedly boosting their workforce related to iPhone 6 production by 10% and 30%, respectively. And Foxconn CEO Terry Gou says he is prepping 10,000 robots to help in Apple device production. These robots, dubbed "foxbots," will play a supporting role alongside employees in Foxconn's factories, according to United Daily News.

All of these reports support the argument that Apple has big plans for the iPhone 6.

Another reason to be bullish on Apple stock?
Given Apple's conservative valuation, meaningful growth in Apple's iPhone segment could prove to be a catalyst for the stock. And it's not just production that looks poised to be unprecedented; demand will likely be robust, too. Consider, for instance, a survey earlier this year from ChangeWave (via Fortune). After surveying 4,109 individuals, the research company concluded:

'This is the highest level of demand for an unannounced Apple model in a ChangeWave survey – stronger than we've seen in previous years for the iPhone 5S and iPhone 5 models prior to their announcements,' said Andy Golub of 451 Research [the company that oversees ChangeWave]. 'Speculation over a larger screen iPhone is clearly striking a chord with consumers.'

Can Apple truly pull off another record-iPhone launch? Given the lack of evidence to the contrary, it appears likely.

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Read/Post Comments (7) | Recommend This Article (6)

Comments from our Foolish Readers

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  • Report this Comment On July 10, 2014, at 7:55 PM, marv08 wrote:

    The truly amazing thing is that a device Apple has never even mentioned or announced is already considered safe to outsell Samsung's S5 launch by a ratio of around 10:1 or better. And that despite Samsung throwing billions at marketing, bundling up to $600 worth of freebies or giving away a second device for free.

    Android is winning. Sure.

  • Report this Comment On July 11, 2014, at 1:27 AM, zippero wrote:

    Samsung has slashed Galaxy S5 orders from 17 mil. in Q2 to just 6 mil. in Q3 because they know the iPhone 6 is about to destroy their entire Galaxy line and they don't want to be stuck with unsold Galaxy S5 inventory. In comparison, last year, the previous-generation Galaxy S4 shipped 20 mil. in Q2 and then 16 mil. in Q3. Both Samsung and Apple know that the iPhone 6 will be massive and will pretty much take over about 2/3rds of all of Samsung's Galaxy premium phone sales in the final calendar quarter of the year (about $40 bil. of Samsung's highest-margin sales shifting over to Apple from Samsung), so the 68 million unit figure is appropriate. The whole nation of S. Korea is wringing its hands and today's editorial in the Korea Times starts out as follows: "The Samsung risk - Economy cannot depend on a few companies, industries - Almost the whole nation is stirring after Samsung Electronics released a far-gloomier-than-expe... earnings forecast for the second quarter...Samsung's problem does not stop at a corporate agony but swells into a national headache because of the economy's undue reliance on Korea's largest company, which accounts for one-fourth of exports and HALF of the operating profits of all listed companies...Korea can ill afford to..allow Samsung to become the Nokia of Korea." You know the other day Finland's prime minister, Mr. Stubby, publicly blamed Apple for causing Finland's current six-year-long ongoing recession by destroying Nokia, Finland's leading company. Well, Apple is going to do that again. The first iPhone was the "Finland-killer," and the iPhone 6 is the "Korea-killer."

  • Report this Comment On July 11, 2014, at 1:31 AM, Oldfool103 wrote:

    Read the comments. Everyone knows that Android is a couple of years ahead of iOS. No one is going to buy this dog. Apple is so dooooomed. (You read it here, first.)

  • Report this Comment On July 11, 2014, at 2:02 AM, zippero wrote:

    Samsung is at near 52-week lows (down 24,000 won today alone), while Apple is near 52-week highs. After his heart attack, Lee Kun-hee is a 70-year old vegetable. Samsung = the Nokia of Korea.

  • Report this Comment On July 11, 2014, at 8:46 AM, Fedman wrote:

    The fly in the "sure thing" ointment is that Apple will once again likely have trouble meeting demand. It will once again become the story of can they get their availability up in time for Christmas.

    Not that I disagree with the demand estimates, but I would caution against equating demand with units sold in the Fall (Apple's 4th) quarter.

  • Report this Comment On July 11, 2014, at 12:31 PM, Nathillien wrote:

    zippero, stop smoking crack.

  • Report this Comment On July 11, 2014, at 1:30 PM, ConstableOdo wrote:

    I think many of you are really getting carried away at those numbers. Even if Apple builds 68 million iPhones, consumers will still have to buy them. Is the demand really that great for an iPhone with a larger display? Wall Street is probably already baking in that 68 million number and if Apple doesn't reach it, then the stock can be quickly downgraded and the iPhone 6 will be ruled as a failure because it didn't meet "anticipated" demand or numbers. I feel certain iPhone 6 will be a top seller but 68 million (if it's before the end of the year) seems a bit much.

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