Morgan Stanley Sees 3Q iPhone Demand In-Line With Expectations

Morgan Stanley released a note Tuesday stating that Apple Inc. (NASDAQ: AAPL) September Quarter iPhone Demand was "in-line with expectations."

Analysts led by Katy L. Huberty compiled sell-through data using web search analysis and found a 37 million unit demand for C3Q 2014.

Huberty noted that "Y/Y growth in the US accelerated significantly compared to the prior quarter and we see potential for positive growth in the September quarter."

Similar growth trends were seen "in the UK, Germany, France, China, and Brazil. We note that China and Brazil did not have iPhone 6 and 6 Plus availability in the September quarter, with Brazil still not on the official list of countries with the new iPhone availability."

Japan was the only country with decelerating growth year-over-year.

Morgan Stanley maintained an Overweight rating on Apple.

Apple Inc. closed at $98.75 on Tuesday, down 1.06 percent.