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A Wedbush analyst remains bullish on Apple (NASDAQ:AAPL) ahead of the much-anticipated iPhone 14 launch event on September 07.
Supply chain checks on Apple proved to be “very firm” as far as the initial order for 90 million iPhone 14 units is concerned.
“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 analyst said in a client note.
He is especially positive amid the strong average selling prices (ASPs) amid a consumer shift to iPhone Pro and Pro Max.
“While the base iPhone will stay at the same price we believe a $100 price increase on the iPhone 14 Pro/Pro Max is likely in store given component price increases as well as added functionality on this new release,” the analyst added.
He sees a “likely low bar” for Apple to beat as the Street looks for the company to ship out about 220 million iPhone units in FY23.
“In the key China region we estimate that roughly 30% of iPhone consumers are in the window for an upgrade cycle,” the analyst concluded.
