Apple erases losses as analyst suggests it could offer positive outlook due to iPhone mix
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Apple (NASDAQ:AAPL) shares reversed earlier losses on Tuesday and rose to a session high as an influential analyst said the company may offer a "positive outlook" for its all-important holiday quarter due to an improving iPhone mix.
In a blog post, TF International Securities analyst Ming-Chi Kuo said that the iPhone 14 Pro models now account for between 60% and 65% of the total iPhone 14 shipments in the second-half of this year, up from a previously estimated range of 55% to 60%.
Of those iPhone 14 Pro units, the most popular model is the iPhone 14 Pro Max, which is Apple's most expensive option, starting at $1,099. Kuo added that the iPhone 14 Pro Max is likely accounting anywhere between 30% and 35% of total iPhone 14 shipments, which could help boost revenue and average selling price.
"The iPhone product mix is improving, so Apple may offer a positive outlook for [fourth-quarter] at the next earnings call in late October (assuming iPhone shipments wonât decline significantly after late November)," Kuo wrote in the post.
If Apple (AAPL) were to offer a positive outlook, Kuo noted that there could be several beneficiaries, including Sony (SONY), which is the sole supplier of the 48MP camera images sensor in the new smartphone.
Other potential beneficiaries include Largan, which is the main supplier of the telephoto lens in the ultra-wide camera, LG Innotek, Alps and Samsung Display (OTCPK:SSNLF).
Apple (AAPL) has stopped issuing formal guidance in recent quarters, due in part to the COVID-19 pandemic.
On Monday, Kuo indicated that the tech giant has asked its manufacturing partner Foxconn (OTCPK:FXCOF) to switch the production lines of its iPhone 14 and iPhone 14 Pro models, a move that could help Apple's product mix and its average selling price in the fourth quarter.
Separately on Tuesday, it was reported that Apple's (AAPL) newly announced products helped Taiwan's export orders rise unexpectedly in August.