Wedbush Securities, an investment company, stated that the demand for Apple’s (NASDAQ:AAPL) new iPhone 14 appears to be “strong” and is tracking ahead of estimates. The new smartphone became available for pre-order on Friday.
Analyst Dan Ives, who has an outperform rating and a price target of $220 on Apple (NASDAQ:AAPL), pointed out that the delivery timeframes for several Pro models have now been pushed out to the middle of October and that the delivery times for most pre-orders are now between three and four weeks away.
Ives wrote to clients that “Demand and orders for the iPhone 14 are outpacing our initial projections and moving slightly ahead of those for the iPhone 13.” He also mentioned a “hefty” mix between the iPhone 14 and the iPhone Pro Max, which would benefit Apple (NASDAQ:AAPL) average selling price.
Ives said that they anticipate this high Pro/Pro Max mix to continue, with China also being a huge sway factor as more customers in this vital area migrate to the Pro model.
In early trading on Monday, shares of Apple (NASDAQ:AAPL) increased by about 2% to reach a price of $160.35.
During the week that just ended, Apple (NASDAQ:AAPL) presented its iPhone 14 product line, together with updated models of the Apple Watch and AirPods Pro.
Ives further stated that Apple (NASDAQ:AAPL) initial order for 90 million iPhone 14 units has “stayed firm” despite the weakening of the global economy and that the company will likely sell at least 220 million iPhone units in fiscal 2023. This is because almost 25% of the 1 billion iPhone users worldwide have not upgraded in 3.5 years, and demand in China for high-end devices continues to be strong.
Recently, several Republican senators issued a warning to Apple (NASDAQ:AAPL), stating that the tech giant would face more scrutiny from Congress if it gets memory chips for the iPhone from Yangtze Memory Technologies.
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