The Apple Inc (NASDAQ:AAPL) iPhone 15 launch event impressed analysts at Wedbush enough to merit a price target upgrade to $240 from $230 along with a repeat Outperform rating.
The day after the event Apple shares traded 0.7% lower at $175.04.
“Apple's iPhone 15 launch event was overall an impressive event which in our opinion lays the groundwork for a major upgrade cycle over the next year,” Wedbush analysts wrote.
“Our Asia supply chain checks this week give us increased confidence that iPhone units should be roughly 85 million units out of the gates and could be close to 90 million as eye popping carrier promotions on the horizon will be a major catalyst for upgrades into holiday season.”
Wedbush analysts also aren’t concerned about reports that China could ban iPhones for government officials, citing conversations with industry contacts in the country.
“We believe this is a very limited warning shot in very select government agencies in China that will have a negligible impact on Apple's China growth over the next year,” analysts wrote. “While the Huawei smartphone launch and nationalism in China are headline risks (and have been for the last five years) our checks in China continue to give us a high level of confidence the bark is way worse than the bite given Street panic running rampant on this issue.”
Wedbush also reiterated its belief that more consumers will buy the more expensive iPhone 15 Pro models this cycle.
“We also expect a heavy iPhone Pro mix shift for iPhone 15 in a 75%/25% base model vs. the historical 60%/40% seen over the past few years in a major [average sale price] tailwind for Cook & Co. especially out of China in a very heavy Pro/Max model mix.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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