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• Wedbush Analyst Daniel Ives: Demand for the iPhone is stable
• Rumors of a reduction in iPhone orders do not agree with Ming-Chi Kuo’s estimates
• Demand for iPhone in the Chinese market may be higher than expected
Daniel Ives: iPhone Demand Slightly Higher Than Expected
As reported by the financial markets platform investing.com, Wedbush analyst Daniel Ives defends the iPhone maker Apple after various Wall Street analysts lowered their target prices for the US company. In a customer note, Ives explained that the supply chain situation in Asia is fairly stable and has improved slightly. And in his opinion, the demand for iPhones is still stable.
“We believe iPhone demand is holding slightly better than expected (despite various supply problems that have plagued Apple and the rest of the tech sector). The stock market is aware of the weaknesses this quarter, however, and we believe it will eventually run beyond the June figures into the quarters of September and December, highlighting the fall production / demand cycle of the iPhone 14, ”he said in a note to customers.
He adds that investors underestimate the durability of the iPhone’s update cycle. Wedbush estimates that approximately 240 million of Apple’s 1 billion iPhones have not been upgraded to a newer device in the last 3.5 years. Overall, Apple should be a tech favorite in 2022, according to Ives.
Ming-Chi Kuo: Reducing the order by ten percent is an exaggeration
Analyst Ming-Chi Kuo recently shared his assessment of the upcoming iPhone via Twitter. Earlier, there were rumors that TSMC’s orders for the iPhone 14 had been cut by ten percent. However, this rumor does not agree with Kuo’s ratings. According to the analyst, while Apple’s minor adjustments to iPhone shipping forecasts are common prior to the iPhone’s launch, it is more likely to be single-digit. “Apple typically doesn’t significantly change its delivery forecasts for new iPhones (double-digit growth or decline) until new models are introduced and confirmed by actual market demand or market feedback. If a supply chain problem causes a significant shift in the delivery schedule for new iPhones before mass production, Apple tends to delay orders rather than cancel them, ”he explains in a Twitter thread.
My approach to purported orders for the TSMC iPhone 14 has dropped by 10%.
1. Reportedly, TSMC’s iPhone 14 orders cut by 10% are not in line with my survey. Currently, I maintain my 2H22 shipment forecast for the iPhone 14, around 100 million and 90 million units for components and EMS respectively.
– 郭明 錤 (Ming-Chi Kuo) (@mingchikuo) July 2, 2022
Greater demand is expected in China
Kuo also sees more demand for the iPhone 14 than the iPhone 13 from the distributor, retailer, and scaler perspective. “My recent survey shows that some Chinese distributors / resellers / retailers have to make the highest deposit for the iPhone 14 to ensure sufficient supply, meaning the demand for the iPhone 14 in the Chinese market is likely to be higher than expected. – he explains on Twitter. In some areas, advances are twice as high as with the iPhone 13.
My recent survey indicates that some Chinese distributors / resellers / scalpers have to pay the highest ever prepayment for an iPhone 14 to ensure sufficient supply, meaning the demand for the iPhone 14 in the Chinese market is likely to be higher than expected .
– 郭明 錤 (Ming-Chi Kuo) (@mingchikuo) June 30, 2022
Ives also estimates that Apple gained around 300 basis points of market share in a key region of China last year. This is important because the installed base is key to Apple’s long-term success.
E. Schmal / Editor of finanzen.net
The leverage must be between 2 and 20
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