apple (AAPL 2.51%) It unveiled its latest iPhone lineup earlier this month, and it looks like consumers are already starting to prepare for the company’s new devices, despite the gloom that pervaded the global smartphone market.
Reports from several online publications indicate that the Apple Store app and website were unable to handle the volume of pre-orders, with customers facing a slew of issues. This indicates that the website and app may have received more traffic than Apple expected.
It now appears that delivery times for some iPhone 14 models are getting delayed. The iPhone 14 Pro and Pro Max models now have estimated delivery dates in the US from October 17 to October 24 and from October 24 to October 31, respectively. According to Apple’s press release announcing the launch of these models, they were supposed to be available from September 16 in the US, on the other hand, the vanilla iPhone 14 and its Plus version appear to be on schedule, given the estimated delivery times. Their availability dates match September 16 and October 7, respectively.
This indicates that the higher-priced iPhone 14 Pro and Pro Max models, starting at $999 and $1,099 respectively, in the US, are in great demand. That might seem a bit surprising considering smartphone shipments will drop in 2022 amid soaring inflation. However, strong demand for the Pro and Pro Max models indicates that the new iPhones could set fire to sales charts.
The iPhone 14 could get Apple’s cash registers ringing
Supply chain surveys suggest that demand for Apple’s more expensive iPhone 14 models will be strong this year. Apple analyst Ming-Chi Kuo notes that the two iPhone 14 Pro models account for 85% of orders in China. Meanwhile, a survey of 9to5Mac readers showed that 92% of respondents would buy the more expensive models.
Moreover, the iPhone 14 Pro and Pro Max models are also seeing strong demand in price sensitive markets like India. iPhone 14 Pro 128GB (GB) has a delivery period from October 10 to October 15 in India. The device is supposed to be available in India from September 16th.
All this suggests that Apple will likely have fun Strong pricing power Once again thanks to its updated models. The average selling price (ASP) of an iPhone rose about 14% last year to $825, according to Counterpoint Research, thanks to strong demand for iPhone 13 models. Initial demand trends for iPhone 14 models suggest Apple may be able to maintain On – or even increase – ASP this year.
At the same time, Apple reportedly expects to sell more iPhone 14 units this year than it sold in 2021. Supply chain gossip indicates that Apple has told suppliers it will make 95 million iPhone 14 units this year. . That would be a nice recovery compared to last year’s estimated iPhone 13 sales of 80 million units.
Highlight the reported healthy demand for iPhone 14 Pro and Pro Max models, and it looks like Apple is on track to boost its iPhone revenue over the upcoming holiday season. This can give a good boost to the company’s top line.
The explosive growth could be in the cards again
Apple reported an unprecedented revenue record of $123.9 billion in the first quarter of fiscal 2022 ending December 25, 2021. This was the first quarter since the launch of iPhone 13 models.
The company shipped an estimated 85 million iPhones during the quarter, and the product generated $71.6 billion in revenue for Apple during the holiday season last year. Assuming that Apple managed to maintain the ASP level of $825 in the December quarter of this year and shipped 95 million units, the iPhone could bring in more than $78 billion in revenue for the company.
So the tech giant might have another huge holiday season driven by its biggest product, which accounted for nearly half of its top streak last quarter. Moreover, the strong sales of the iPhone 14 range could reflect positively on Apple’s stock price. So investors are looking to buy a technology stock For now, you might want to buy Apple before the holiday season arrives, as it trades at a 24x winning streak — discounting its 2021 earnings multiple of 31 — before heading higher on the back of the potentially successful iPhone 14.
cruel shuhan He has no position in any of the mentioned shares. Motley Fool has and recommends positions at Apple. Motley Fool recommends the following options: long calls in March 2023 worth $120 on Apple and short calls in March 2023 worth $130 on Apple. Motley Fool owns a profile Disclosure Policy.