Apple Inc (NASDAQ:AAPL) delivered an impressive iPhone beat during its second quarter of 2023 and gave a relatively upbeat outlook going forward, as the consumer electronics giant rides out this macro storm in “Rock of Gibraltar-like fashion,” analysts at Wedbush Securities wrote in a note published on Friday.
“An uptick in China demand speaks to further share gains that Apple is seeing with iPhone 14 Pro along with higher ASPs (average selling prices) globally that we believe is now in the $900+ level giving Apple tailwinds in this market,” the analysts wrote.
“Overall, (Apple CEO Tim) Cook talked about a stable consumer demand environment with particular strength in emerging markets as Apple continues to aggressively bet on a number of key markets with India front and center,” they added.
The Wedbush analysts also stated that they believe Apple’s margin story continues to get better and better as the company now owns more of its supply chain and is flexing its muscles, which investors are happy to see along with a new $90 billion buyback program as “cherry on top of the sundae”.
Furthermore, they estimate that about 25% of Apple’s installed base has not upgraded its iPhone in four years, which sets up for a new “mini super cycle.”
The analysts noted that Apple remains their top tech pick, maintaining their ‘Outperform’ rating and $205 per share target price, which suggests about 18% upside from current levels.
Apple shares were trading up 4.9% at US$173.90 on Friday morning.
Contact Sean at sean@proactiveinvestors.com