Apple has had its share of pivotal moments in its history. As examples, think of the introduction of the Mac, the iPod, the first iPhone, and the iPad. Wedbush analyst Daniel Ives thinks another moment is on the way, although it won’t coincide with a new product category. PED30 shared a note to investors in which Ives stated that he expects Apple growth to continue in the face of 2022 COVID shutdowns and supply chain issues. The iPhone 14 launch coming next week is the catalyst for this bullish outlook.
Ives predicts iPhone 14 demand will be roughly flat with an initial order of 90 million units, but that the product mix trends toward the more expensive Pro and Pro Max models. This points to a higher average selling price (ASP). Also helping the ASP (but not consumers) is an expected $100 price increase for the Pro/Pro Max due to component price increases.
Total demand for iPhone is expected to exceed 220 million units in fiscal year 2023 “given the pent up demand story that we are seeing globally for Apple…”, said Ives. The bottom line? Ives maintained his “outperform” rating for Apple and a $220 share price target.
