- Apple’s shares soared by up to 2% on Monday after it disclosed solid pre-orders for the iPhone 15.
- Both Wedbush and Goldman Sachs stated that internal inquiries reveal that the demand for new iPhones is outstripping supply.
- “We consider the elongated lead times for the iPhone 15 Pro and iPhone 15 Pro Max as a positive indication of consumer demand,” Goldman Sachs remarked.
Apple’s stock price increased by 2% on Monday following reports from Wall Street indicating robust consumer demand for the iPhone 15.
The iPhone 15 was revealed last week, and pre-orders for the device commenced on Friday. The new iPhone 15 is slated to be available for purchase in Apple’s physical retail stores this Friday.
According to Dan Ives, an analyst from Wedbush, pre-orders for the iPhone 15 have risen by 10% to 12% compared to early pre-orders for the iPhone 14 lineup.
“Delivery/shipment times for various models of the iPhone 15 Pro/Pro Max have now moved from late October to early November,” stated Ives in a note on Monday. Outside the US, Ives highlighted the strong iPhone 15 pre-order numbers in India, China, and certain parts of Europe.
Goldman Sachs stated in a note on Monday that e-commerce fulfillment dates for selected devices and regions are “advancing rapidly” by more than eight weeks from the launch date on Friday, “demonstrating that demand continues to outstrip supply.”
“We consider the elongated lead times for the iPhone 15 Pro and iPhone 15 Pro Max as a positive indication of consumer demand and improving price/mix,” commented Goldman Sachs. The firm also mentioned that there is strong demand for the pink-colored iPhone 15.
With robust pre-orders, internal investigations with Apple’s supply chain, and strong promotions from wireless carriers such as Verizon and AT&T, Ives is confident that Apple will sell between 85 million to 90 million units of the iPhone 15 during the initial launch.
According to Ives, the majority of the demand for the iPhone 15 lineup is focused on the more expensive Pro and Pro Max models, which will contribute to an increase in the average selling price of Apple’s iPhone by $100 to approximately $925.
“We believe iPhone units should reach a level in the 225 million unit range in fiscal 2024 and the average selling price should increase,” said Ives, adding that the market is underestimating this due to the ongoing large-scale upgrade cycle of the installed base in Cupertino.
Apple’s share price experienced a sharp incline of 2.3% in early trading on Monday, but its gains narrowed to slightly over 1%. Goldman Sachs and Wedbush have given Apple a “buy” and “outperform” rating with price targets of $216 and $240, respectively.