NEW YORK ( TheStreet) -- Collin Gillis, senior technology analyst at BGC Partners, discusses what could move Apple (AAPL - Get Report) shares with Stephanie Link, co-manager of the Action Alerts PLUS portfolio.
Gillis said that sales of 9 million iPhone 5S and 5C phones on the opening weekend were large but were likely skewed.
He also said that Apple's new carrier partnerships should help boost sales and that the September quarter should be strong, with improved margins and guidance.
But all the chatter on the Street is regarding Apple's impending deal with China Mobile (CHL), which Gillis said would be a huge catalyst because of the number of subscribers China Mobile has.Although the stock price might have the expectation slightly baked in already, it will likely pop on the news, he added. And although Apple raised its margin guidance to the upper end of the range, it's still less than levels seen just a few years ago. But according to Gillis, it's difficult for Apple to keep margins as high as they were with aging product categories and increased competition. Amazon (AMZN - Get Report) recently introduced tablets with even lower prices, sacrificing profitability in exchange for market share. Gillis concluded that Amazon could be risky, due to the lack of profitability and increasing share price. He added that China Mobile and an iPad refresh should help Apple in the near term, but new products would be a significant catalyst going forward. Action Alerts PLUS, which Stephanie Link co-manages as a charitable trust, owned shares of Apple. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell