Apple, Inc. (NASDAQ:AAPL) launched the next iteration of its iPhones last week and early reception to the device has been positive, according to Wedbush analyst Daniel Ives.

The Apple Analyst: Ives has an Outperform rating for Apple shares and a $240 price target.

The Apple Thesis: The iPhone 15 preorders, which began on Friday, were tracking much stronger than consensus estimates, Ives said in a note. Preorders were up roughly 10-12% from the preorders for the iPhone 14, he said, citing Wedbush’s analysis.

The product mix is heavily skewed towards iPhone 15 Pro/Pro Max, with Pro Max exceptionally strong in the US, China, India, and parts of Europe, the analyst said. This bodes well for ASPs, he said, adding that he estimates ASPs in the range of $925, up about $100 over the past 12 months.

Ives also noted that delivery/shipment times have now moved to late October-early November for iPhone 15 Pro/iPhone 15 Pro Max. The iPhone 15 is set to go on sale in Apple Stores on Friday, he said.

“The iPhone 15 Max looks like a clear standout on this cycle,” the analyst said. He estimates that preorders in India were up about 25% year-over-year and stronger in China. “We believe market share gains
will remain steady in China from Apple with this iPhone 15 cycle despite growing Street skepticism,” he added.

See Also: Everything You Need To Know About Apple Stock

Wedbush’s Asia supply chain checks this weekend have given increased confidence that iPhone shipments could be close to 90 million units in the holiday quarter, Ives said. Sales will likely be facilitated by eye-popping carrier promotions, facilitating upgrades into the holiday season, he said.

For the fiscal year 2024, the analyst models iPhone unit sales in the range of 225 million units and rising ASPs. “This speaks to the underlying demand story that Apple anticipates for this next iPhone release with our estimates that ~250 million+ of 1.2 billion iPhone users worldwide have not upgraded their phones in over 4 years,” he added.

Apple Stock: Apple closed Friday’s session down 0.42% at $175.01, according to Benzinga Pro data.

Photo Courtesy: Apple

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