Apple Inc (NASDAQ:AAPL)'s iPhone 15 hit the shelves today, generating extensive queues outside Apple Stores across major markets such as China, Europe, and the US.
This on-ground fervor echoes the robust online pre-order activity observed earlier, indicating a significant consumer appetite for the latest generation smartphone from Cupertino, analysts at Wedbush wrote.
Analysts believe this scarcity is a consequence of the pent-up demand fueled by approximately 250 million iPhones that haven't undergone an upgrade for over four years, further propelled by attractive carrier discounts and the technological advancements, especially in camera technology and chips, found in the iPhone 15 Pro and Pro Max models.
“iPhone 15 pre-orders are still tracking much stronger than we and the Street originally expected and up roughly 10%-12% from iPhone 14 based on our analysis,” Wedbush analysts wrote.
“The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe. This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle.”
Consumer preference is expected to boost Apple's Average Selling Prices (ASPs) to around $925, a significant leap of approximately $100 within the past 12-15 months, driven primarily by the appeal of the Pro models.
Meanwhile, delivery timelines for the iPhone 15 Pro and Pro Max have been pushed to late October to mid-November, underscoring the high demand for these coveted variants.
Asia's supply chain checks have provided encouraging insights, hinting at an impressive initial debut of approximately 85-90 million iPhone units.
Looking ahead, Wedbush projects iPhone units stabilizing around the 225 million range in FY24, accompanied by a notable rise in ASPs, an aspect that the market has seemingly underestimated.
Wedbush has an Outperform rating and set a target price of $240 on Apple stock.