Apple Inc.'s (NASDAQ: AAPL) latest smartphone series, the iPhone 15 that, has introduced significant design changes and enhancements, finally went on sale, sparking questions about its potential impact on holiday sales.
What Happened: On Friday, long lines were observed in various parts of the world, including Dubai, Australia, China, the U.S., India, the U.K., and France, despite the prevalence of online ordering, reported Bloomberg.
In cities like Beijing, Apple stores saw eager customers flocking in, even amid the backdrop of the Chinese government reportedly expanding its ban on iPhone use in certain sectors.
Mixed Response: While orders for the highest-end iPhone 15 models are already backlogged until mid-November in several countries, other newly launched products like the regular iPhone 15, 15 Plus models, the new AirPods with a USB-C case, Apple Watch ULTRA 2, and Apple Watch Series 9 received a more subdued response online.
However, certain Apple Watch band configurations have continued to attract attention.
Holiday Season: With the iPhone series representing roughly half of Apple's overall revenue, Cupertino is placing high stakes on the iPhone 15 series to reverse a trend of declining sales.
Apple's optimism stems from the fact that new iPhone designs tend to prompt more upgrades. The iPhone 15 Pro, in particular, features a significant design shift with its titanium construction.
Notably, the holiday season marks the beginning of Apple's first fiscal quarter in 2024.
Why It's Important: For the unversed, Apple has raised the starting price of the iPhone 15 Pro Max by $100 while offering exclusive camera features, potentially making it a significant revenue driver.
Wall Street estimates for Apple's fourth-quarter revenue currently stand at $89.3 billion, with $43.6 billion projected to come from the iPhone, the report noted.
However, if these estimates are correct, it would be a decline from 2022, when Apple generated $90.1 billion during the fourth quarter, with $42.6 billion coming from the iPhone 14 series.