iPhone 5, iPad mini sales exceed expectations

Credit: Apple

In a note to investors on Thursday, Morgan Stanley analyst Katy Huberty wrote that her recent meetings with members of Apple’s supply chain say that sales of the iPhone 5 and iPad mini are stronger than anticipated.

“Key suppliers into iPhone and iPad noted above seasonal March quarter order trends, stronger than expected December quarter revenue, and the potential to further upside before year-end,” Huberty wrote.

Credit: Apple

The analyst expects more customers to upgrade to the new iPhone this quarter and next year.

Huberty also expects Apple to outpace Wall Street expectations.

Analysts estimate that Cupertino will sell 43 million iPhones and 19 million iPads.

Huberty said that Apple’s supply constraints are getting reduced as production issues with the new in-cell touchscreen panels for the iPhone 5 are not a problem anymore.

Suppliers reportedly told her that yield rates are currently between 70 and 80 % in the December quarter.

Source: AppleInsider