Apple Inc. AAPL will launch the iPhone 14 in mid-September and seems to be in a strong position from a supply perspective, according to Wedbush.
The Apple Analyst: Wedbush's Daniel Ives maintains an Outperform rating for Apple, raising the price target from $200 to $220.
The Apple Thesis: Although China’s zero-Covid restrictions disrupted the supply chain from March to May, checks over the last few weeks “remain very firm” and reveal a further improvement, Ives said.
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"We believe the initial order for 90 million iPhone 14 units out of the gates has stayed firm and will be roughly flat with iPhone 13 despite the macro storm clouds," the analyst wrote. "This speaks to the underlying demand story that Apple anticipates for this next iPhone release with our estimates that 240 million of 1 billion iPhone users worldwide have not upgraded their phones in over 3.5 years."
The Cupertino, California-based company also expects “another heavy iPhone Pro and Pro Max mix shift,” which will boost average selling prices heading into fiscal 2023.
AAPL Price Action: Shares of Apple rose 0.68% to $174.21 at the time of publication Wednesday.
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