Why Apple Can Continue To Beat Street's Expectations? Because Of These Advantages

Apple Inc. AAPL yet again came out with better than expected quarterly results. Revenue for the quarter came at $40.3 billion, above estimates of $36.8 billion, while EPS came at $2.33, again above estimates of $2.15.

The core product of the company, iPhone, saw a massive 55 percent year-over-year sales increase which according to many analysts is due to the strong demand of iPhone 6 and iPhone 6 Plus in China.

David Garrity, principal at GVA Research, was on CNBC post Apple’s results to discuss the advantages that Apple can bank on.

Better User Experience

“I think we are in a situation here, where if we look at China, you are seeing a great move away from large form factor phones that had Android operating systems to them,” Garrity said. “Apple operating system basically offers a better user experience.”

Strong Upgrade Cycle

He continued, “The other advantage that there is for Apple we think is that certainly you have [the advantages] of these iPhones 6s [that] are being sold out to potentially tie  along with them Apple Watch sales going forward. So, from that standpoint we think we are in the midst of a very strong upgrade cycle around iPhone 6 that continues.”

Broadening Of Product Portfolio

 “We are also going to be seeing a broadening of the product portfolio with the Apple Watch, granted there may be some concerns as to whether the supply chain can actually fill those orders.”

“But the indications that have been heard is that they are basically ramping up in terms of the supply chain to produce more than 20 million units over the course of 2015,” Garrity concluded.