Technology giant Apple Inc
With the iPhone now officially on sale, one analyst shares an update on what's ahead for the company.
The Apple Analyst: Wedbush analyst Daniel Ives has an Outperform rating on Apple and a price target of $240.
The Analyst Takeaways: Long lines for the iPhone 15 were reported in parts of the world like China, Europe and the U.S., Ives said in his updated note.
The excitement and long lines matches what he has been tracking online when looking at pre-orders, he added.
"The big focus of consumers at the Midtown Apple Store today has been Pro Max so far as we believe a scarcity of iPhone 15 Pro Max is starting to build throughout the supply chain," Ives said.
The anticipation and long lines come from "pent-up demand" with an estimated 250 million iPhones that have not been upgraded in four or more years, Ives explained. Customers are inclined to upgrade to the iPhone 15 due to the length of time they've waited along with big carrier discounts and increased camera capabilities.
"iPhone 15 pre-orders are still tracking much stronger than we and the Street originally expected and up roughly 10% to 12% from iPhone 14 based on our analysis," he said.
The increased attention and product mix of the iPhone 15 Pro and iPhone 15 Pro Max is noted as a "clear positive for Apple" with higher average sale prices a tailwind for the company.
Increased demand has pushed delivery times for iPhones back. Ives expects that pre-orders in India could be up 25% year-over-year and China sales could also be strong.
"We believe market share gains will remain steady in China from Apple with this iPhone 15 cycle despite growing Street skepticism," he said.
Ives said that iPhone units sold initially could be close to 90 million and could reach 225 million for fiscal 2024.
AAPL Price Action: Apple shares are up 1% to $174.93 on Friday versus a 52-week trading range of $124.17 to $198.23. Shares of the technology giant are up 40% year-to-date in 2023.
