‘Pent up’ iPhone 14 demand will skew heavily to Pro models

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.

Apple’s supply chain is in a strong position for the launch of the iPhone 14, Wedbush analysts believe, with a raise in average selling prices expected through consumers shifting towards the Pro models.

The iPhone 14 launch, anticipated to occur during the September 7 event, will be a “massive achievement” for Apple and its management, according to Wedbush analysts Daniel Ives and John Katsingris, in a note seen by AppleInsider.

After supply chain issues and COVID shutdowns, it is thought that Apple will maintain its initial 90M unit order for the iPhone 14, which will be “roughly flat” with the iPhone 13. This is despite “the macro storm clouds building.”

Wedbush estimates there will be high demand for this iPhone release, with 240 million of 1 billion iPhone users around the world yet to upgrade after 3.5 years. As for what that upgrade could be, it is thought to be more premium devices.

READ:   Microsoft’s layoffs, Airlift’s shutdown and Lofi Girl’s unplanned study break

“In particular, we believe Apple is expecting another heavy iPhone Pro and Pro Max mix shift which is a clear positive for ASPs heading into FY23,” the note states. Given rumors that the iPhone 14 update will be extremely minor compared to a bigger iPhone 14 Pro spec bump, this may be justifiable.

Though pricing is reckoned to stay static for the iPhone 14, Wedbush thinks the iPhone 14 Pro and Pro Max will see a $100 price increase. Along with a 48MP camera and A16 chip on Pro, Apple may possibly include some “storage enhancements” across all of ts models.

Wedbush also comments about China, which will apparently see strong demand for the new models. The baseline of 220 million iPhone units for FY23 is “Likely a low bar given the pent-up demand story that we are seeing,” the analysts muse.

READ:   All iOS VPNs are worthless and Apple knows it, claims researcher

For China alone, it is estimated that roughly 30% of iPhone consumers are in the upgrade window, and with most likely to be Pro and Pro Max purchasers.

The Services arm will continue to see growth in FY23, Wedbush adds, with growth to $90B in the year and a potential to beat $100 billion in FY24 with continued double-digit growth. It is a “key revenue stream” for Apple that “remains at the epicenter of Apple’s multiple and growth story during this market storm.”

Apple’s Services business is thought to be worth north of $1 trillion alone on a growth and EBITDA basis. When combined with its iPhone hardware business, Wedbush believes that this “makes the risk-reward very compelling at current levels.”

Wedbush believes Apple’s growth story has “clear momentum” around the iPhone 14, “despite the shaky macro.” The firm is maintaining its Outperform rating and a $220 price target.

SOURCE: APPLE INSIDER

(Visited 4 times, 1 visits today)

Only authentic Gist, News and Gossips around Nigeria.

Related Posts

us-antitrust-officials-ask-to-be-heard-in-epic-vs.-apple-appeal

U.S. antitrust officials ask to be heard in Epic vs. Apple appeal

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. The US Department of Justice has requested to participate in the appeals hearing regarding Epic’s case against Apple’s App Store policies. Apple and Epic Games are

tesla-ordered-to-tell-laid-off-workers-about-lawsuit

Tesla ordered to tell laid off workers about lawsuit

A U.S. District Court has ordered that Tesla must tell employees about a lawsuit alleging the automaker violated state and federal law by requiring workers to sign separation agreements. Two former Tesla employees filed the suit in July, alleging that the company required them to sign releases in exchange for less severance than federal and

iphone-14-reactions,-best-ios-16-features,-and-how-to-benefit-from-focus-filters

iPhone 14 reactions, best iOS 16 features, and how to benefit from Focus Filters

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Everything you need to know about the iPhone 14 Pro launch and that 48MP camera, plus what’s best in iOS 16 — and in the forthcoming

autonomous-electric-truck-company-einride-rides-into-germany

Autonomous electric truck company Einride rides into Germany

Autonomous and electric truck maker Einride is rolling into Germany, representing its first new market in Europe outside its native Sweden. Founded out of Stockholm in 2016, Einride has raised some $150 million in funding to commercialize a cab-less autonomous cargo truck, one that can be controlled remotely if required by human operators. It’s a

original-iphone-stars-in-stephen-king’s-‘mr.-harrigan’s-phone’

Original iPhone stars in Stephen King’s ‘Mr. Harrigan’s Phone’

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Netflix released a trailer for “Mr. Harrigan’s Phone” and it modifies the timeline of the original story so the main characters each have an original iPhone.

tencent-lays-off-nearly-all-of-staff-at-its-gaming-site-fanbyte

Tencent lays off nearly all of staff at its gaming site Fanbyte

The first rule of conducting layoffs is to not be a jerk about it. The second rule is to make sure the social media manager you just laid off doesn’t still have access to your accounts. Today, Tencent violated both of those rules as it laid off nearly all of the editorial staff at Fanbyte

Leave a Reply

Your email address will not be published.