April 8 (Bloomberg) -- Apple Inc.’s 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.
“IPhone 5 sales declined consistent with normal seasonal patterns after very strong December holiday quarter sales,” said Walkley, who rates the shares a buy and has a $600 target price. “However, our surveys indicated stronger sales of iPhone 4/4S at reduced prices.”
Apple’s shares rose less than 1 percent to $426.21 at the close in New York. The stock has lost 20 percent this year, compared with a 9.6 percent gain for the Standard & Poor’s 500 Index.
Amy Bessette, an spokeswoman for Cupertino, California-based Apple, declined to comment on the sales projections.
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