Apple's Q1 Results A 'Major Statement Of iPhone/Services Demand': Analyst

Apple, Inc. AAPL reported late Thursday with strong quarterly results that "wowed" a Wedbush analyst. 

The Apple Analyst: Daniel Ives has an Outperform rating on Apple with a $200 price target. 

The Apple Takeaways: Apple's robust quarter will be the focus of the tech universe, especially as the Street harbored major supply chain and growth fears, heading into the print, Ives said in a note.

The iPhone was the "star of the show," as revenues from the product beat the Street estimates and the Services business also exceeded expectations, the analyst said. The beat was across all product categories, except the iPad, he said. 

The bottom-line result of $2.10 and margins were also ahead of expectations, Ives said. 

Related Link: Apple Becomes First Company To Top $3 Trillion Market Cap; Analyst Says Rally Has Further Legs

"Overall, with $6 billion already pushed due to the supply chain in the quarter, we would characterize this quarter as a major statement on iPhone/Services demand and Cupertino's ability to navigate a supply chain shortage in almost Teflon-like fashion," the analyst said. 

Apple CEO Tim Cook noted supply chain improvement for the March quarter, which are "calming words heard around the tech world," he said. 

With ASPs continuing to be very positive on Pro/Pro Max and roughly 250 million of 975 million iPhones worldwide not upgrading in 3 1/2 years, the focus is on the demand front, Ives said. Supply chain issues are unlikely to crash the iPhone growth story in 2022, he said. 

AAPL Price Action: In after-hours trading, Apple shares were rallying 3.22% to $164.35.

Related Link: Why Apple's 'AR/VR Opportunity' Gets This Analyst Excited About Cupertino's Growth

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