As of 12:31 PM EDT today, the price of Apple stock was 155.35 (+1.51) (+0.98%).
Morgan Stanley said that the iPhone 14 cycle is beginning out stronger than anticipated, with an eye toward relative lead times and early data from China, and Apple (NASDAQ:AAPL) is one of the top big-tech gainers Wednesday, up 1.6%.
According to analyst Erik Woodring, the main question before Apples iPhone unveiling event last week was how resilient demand would be for the new phone in the face of the twin consumer electronics market headwinds of 2022: sustained inflation and escalating macroeconomic instability.
Product release: iPhone 14 Pro
However, according to the companys internal tracker, iPhone 14 Pro Max lead times are the longest of any iPhone model from the last six years (at this stage in the cycle), he noted. Similar to the iPhone 13 Pro/Pro Max from the previous year, the lead times on the iPhone 14 Pro are the third-longest in that period.
Growth prospects behind strong apple stock forecast
Early pre-order feedback from markets like China and India is equally robust, and early adoption is a bit stronger than we expected. The high-end model differentiation strategy may result in an additional boost to average selling prices over the fiscal year, which are already 5% higher than the estimate at $900.
According to Woodring, Together, these early cycle data signals are helping to allay fears of major iPhone weakness and are in line with our view that the iPhone is a more staples-like product more resilient to macro shocks (although we caution that its still very early in the cycle).” In the September quarter, he projects 51 million iPhone shipments, and in the December quarter, 84.5 million, based on builds of 49 and 82 million units, respectively. But the shipment forecast could go raised if builds go above those projections in either quarter.
Delivery predictions for the new phones started slipping into October as of last week. Furthermore, according to Wedbush, strong preorder demand was tracking a little bit ahead of the previous iPhone generation.
Featured Image – Megapixl (C) Lester69
Author: Jowi Kwasu
Market Jar Media Inc.
#170 – 422 Richards Street
Vancouver, BC, Canada
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Fortune Outlook journalist was involved in the writing and production of this article.