- Piper Jaffray is out positive on Apple (NASDAQ:AAPL) saying their checks show iPhone demand at AT&T stores is up at a sustained rate of +70%-100% following the price cut. Previously the firm had expected demand to stabilize at +50%.
While they are modeling for 800k iPhones, firm's new sensitivity which factors in checks from yesterday suggests Apple will sell 1.05m iPhones in the September quarter. PJ's previous sensitivity had suggested 1.01m phones in the quarter.
While 40k additional phones in the September quarter may seem irrelevant, Piper tells investors to keep in mind that this incremental change is the result of only 21 days in the quarter at the lower iPhone price point ($399). If one assumes that this +70% run rate is sustainable, it would add ~170k phones to a full quarter.
Maintains Outperform and $211 tgt.
Notablecalls: We had optimistic comments from Piper regarding iPod demand yesterday. Now they're out saying demand for the iPhone is outpacing their ests. Remember there has been lots of talk of iPhone not selling well enough at AT&T. The chart strongly suggests AAPL is headed to $160 in the n-t. Be on that train and be early! Actionable trading call alert!
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