Apple revenue growth to be boosted by strong iPhone 6 demand, iPad rebound

Strong global demand for Apple’s iPhone 6 will drive revenue growth through 2015, while updated models should help reverse three straight quarters of declining iPad sales, analysts said.

The company posted better-than-expected revenue on Monday on the back of a record iPhone launch that saw 39 million of the smartphones sold in the September quarter.

“We expect this momentum to continue in the December quarter and into 2015, particularly as supply improves steadily in coming months,” Goldman Sachs analysts wrote in a note to clients.

Goldman raised its price target on the stock by US$9 to $124, above a mean price target of $112.02, based on 51 brokerages covered by Thomson Reuters StarMine data.

At least 10 other brokerages raised their price targets on the stock by between $1 and $20.

Orders for Apple’s new iPhone 6, which comes in larger sizes and a heftier price tag, began in September.

“(We) were encouraged by Tim Cook’s comments regarding Apple basically selling every iPhone 6/6 Plus it can produce and will likely remain undersupplied relative to demand through the end of 2014,” Canaccord Genuity analysts said in a note to clients.

They said Apple was not expected to catch up with demand until early next year.

Apple posted its strongest growth in Mac computer shipments in years during the September quarter, even as sales of its iPad, which helped launch the mainstream tablet market in 2010, slid for a third consecutive quarter.

"Still, we believe Apple will reverse the trend on the iPad with its recent product refresh and also believe that the Mac product line will continue to gain market share against its PC rivals," analysts at William Blair said.

Apple, last week launched it’s faster and slimmer iPad Air 2 with a fingerprint sensor, hoping to attract consumers for the holiday shopping season.

According to StarMine data, 16 analysts rate the stock “strong buy,” 25 rate it a “buy,” nine rate it a “hold,” and just one analyst rates it a “sell.”

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Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.