Pacific Crest Reports February Handset Sell-Through In-line

In a report published Monday, Pacific Crest Securities noted that February handset sell-through came in-line with expectations.

Pacific Crest's carrier checks revealed in line iPhone sales in the United States and Western Europe. The firm continued to note that iPhone sell-through in these regions are in line with or slightly ahead of estimates in the March quarter, which expected a 21% decline quarter-over-quarter. The analyst was optimistic on upgrades and promotions, but reported a decline month-over-month in days of inventory and absolute inventory levels. Shares of Apple Inc.

spiked to $529.97 on Monday morning before closing at $526.74.

The firm commented on the slowdown in demand for the existing Samsung high-end devices despite heavy promotions. Pacific Crest added that Samsung saw a surge in GS4 and Note 3 inventories due to a break prior to the GS5 release. The analyst wrote, “Despite optimism ahead of the G5 launch, we remain skeptical that its launch will provide relief for component suppliers without offset opportunities such as share gains and increasing content.”