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The iPhone 6 at 6 Months: How Are Sales Holding Up?

Last fall, Apple 's iPhone 6 and iPhone 6 Plus took the tech world by storm, boosting iPhone sales into the stratosphere. In the first weekend that the iPhone 6 and iPhone 6 Plus were on sale, Apple sold more than 10 million of them -- despite not selling any in mainland China, one of Apple's biggest markets.

The iPhone sales mix may be starting to shift back toward the iPhone 5s and iPhone 5c. Photo: Apple.

Second, high demand for the new iPhones prevented Apple from reaching supply demand balance last quarter. The buildup of normal retail channel inventory this quarter could potentially account for sales of 7 million additional iPhones.

Third, Fiksu discloses that its data for the Asia-Pacific may not be representative, based upon the apps that utilize its software development kit. In all likelihood, this means that Fiksu is under-sampling in that region, especially in emerging markets.

This means that Fiksu is probably undercounting Apple's strong sales in China. Kantar Worldpanel reported earlier this month that the iPhone snagged more than 25% of smartphone sales in urban China in January, up 4.5 percentage points year over year.

The popularity of the iPhone 6 and iPhone 6 Plus as luxury gifting items probably kept the sales momentum up during February due to the Chinese New Year. As a result, if Fiksu is not fully capturing usage growth in China, it may be missing the biggest iPhone sales driver of the past quarter.

We'll find out in a month just how well iPhone sales have held up this quarter. But based on the evidence available today, it looks like Apple is poised to post another quarter of strong iPhone sales growth. This will, in turn, lift the company's profit margin and EPS, keeping shareholders happy.

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The article The iPhone 6 at 6 Months: How Are Sales Holding Up? originally appeared on Fool.com.

Adam Levine-Weinberg is long January 2016 $80 calls on Apple, short January 2016 $120 calls on Apple, and short January 2016 $140 calls on Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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