Did Apple Sell 70 Million iPhones?

By Paul Ausick Updated Apr 27, 8:11PM EDT · Published Jan 26, 8:15AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Analysts up and down the Street expect Apple Inc. (NASDAQ: AAPL) to report big numbers on Tuesday when the company reveals its first fiscal-quarter results. There are two main reasons for that: China and higher average selling prices.

Apple had to delay the release of the latest iPhones in China due to a regulatory issue, so the devices did not go on sale until mid-October. But since then sales have been very strong, particularly for the 6 Plus. Even given the delay, one analyst suggested to the Financial Times that Apple sold as many as 2 million more phones in China during the quarter than it sold in the United States.

Analysts at UBS estimated that China accounted for 36% of iPhone shipments in the quarter compared with the United States, which accounted for 24% of shipments. If that turns out to be true, then Apple CEO Tim Cook’s prediction that China would overtake the U.S. in iPhone sales will have come true sooner than he probably expected.

So, how many iPhones did Apple sell? The headline number appears to be around 70 million units. At UBS, analyst Steve Milunovich expects sales of 67 million units at an average selling price of $685. According to Milunovich, a consensus Street estimate calls for 65.5 million units at $680.

Credit Suisse analyst Kulbinder Garcha told Forbes that he expects iPhone volumes of 71 million units in the first quarter, while Brian Blair at Rosenblatt Securities has modeled sales of 72 million units.

ALSO READ: Top 10 Earnings to Watch This Week

The even better news for Apple is that the decline rate from the first quarter could well be lower than the historical average sales decline of 15% to 20%. Blair thinks the decline could be just 11% and that Apple will sell some 60 million units in the company’s second quarter and a total of 220 million units in the 2015 calendar year.

Cowen analyst Timothy Arcuri’s estimate calls for 68 million units in the first quarter and 52 million in the second.

Apple’s strong brand in China and its availability with all three of the country’s largest wireless carriers is a big part of the reason for the optimism. Another part of the reason is Samsung’s continuing difficulty in maintaining its market share lead. A report at Caixin Online noted that Samsung’s market share in October fell from its January 2014 level of 20% to 13.7%. Apple claimed 9.4% of the market in October, trailing second place Lenovo, which had 10.7%.

About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.