Apple seeing 'stellar' iPhone 13 demand, supply chain improving, Wedbush says
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Apple (NASDAQ:AAPL) is seeing "stellar" demand for its iPhone 13 around the world and though the company has been hampered a bit by global supply chain issues, it looks as if there are "discernible" improvements, according to investment firm Wedbush Securities.
Analyst Dan Ives, who rates Apple (AAPL) outperform and a $200 price target, noted that these improvements bode well not only for the upcoming June quarter, but the next iPhone release as well. The recently announced iPhone SE with 5G capability is likely to sell roughly 30 million units, adding to a "monster product cycle" for the company, the strongest since 2015, Ives added.
"Taking a step back, while the risk off dynamic in the market has been front and center for tech investors with Apple's stock also under pressure thus far in 2022 along with other tech stalwarts, we believe the company is setting up for a monster growth cycle over the next 12 to 18 that is not baked into shares at current levels," Ives wrote in a note to clients.
Apple (AAPL) shares fell 0.5% to $167.98 in premarket trading on Tuesday.
In addition, Ives noted that Apple (AAPL) is likely gaining market share in China, to the tune of roughly 300 basis points over the past 12 months, due to the iPhone 12 and iPhone 13. Apple (AAPL) is also benefiting as consumers buy more expensive iPhones outside of China, many of whom are buying the Pro and Pro Max, "which is a nice positive for the March quarter."
Last week, Ives said Apple (AAPL) is still the top tech stock after the Federal Reserve gave a "bright green light" to own oversold tech stocks.