Michael Walkley, Managing Director, Canaccord
Apple stock price flirted with its 52 week low of 419 on Friday, and looked like it would make another run for it Monday morning, when it suddenly reversed when Michael Walkley raised his estimate for iPhone sales to come in line with Philip Elmer-DeWitt’s median projection of 48 analysts, comprised of 30 Wall Street professionals and 18 amateurs.
Now, do I really think Apple’s price reversed on Walkley’s revised estimate? Um, no. But that’s what a bunch of reporters are saying because they don’t have a better story. I’m going with Apple’s stock price is was buoyed upon strong support, and then the markets got a spark as they broke through a wall of resistance, pulling Apple along in the wake. Sounds better when an entire market was the cause of a reversal than the ramblings of a single analyst.
iPhone sales topped some estimates in the fiscal second quarter amid strong demand for older models, according to Canaccord Genuity Inc., which raised its projection by 7.2 percent to 37 million units.
For the fiscal third quarter, which ends in June, Apple will probably sell 27 million iPhones, up from a prior projection of 25 million, Michael Walkley, an analyst at Canaccord Genuity, wrote in a research report.
The average price for the iPhone probably dropped to $601 in the second quarter, which ended in March, as more users than expected bought the reduced-cost iPhone 4S and iPhone 4 handsets, Walkley said. In the December period, when the new iPhone 5 made up a greater portion of sales, the average price was $651, he said. The iPhone is Apple’s top selling product, accounting for more than half of total revenue.