Apple Inc (NASDAQ:AAPL) is in a strong position heading into the holiday season thanks to strong iPhone demand in China, according to analysts at Wedbush.
“Our recent Asia supply chain checks remain very firm for Apple's iPhone 15 into an important holiday season with particular strength in the China region despite all the negative bear noise a few months ago,” the analysts wrote.
The firm estimated that more than 100 million iPhones in China (of 240 million globally) are within an upgrade window, with a higher percentage of iPhone Pro models this time around than the iPhone 14 cycle.
“We have not seen any major negative revisions around iPhone units coming out of Asia into holiday season/early 2024 which speaks to what we believe is a very consistent consumer demand environment around iPhone 15 so far which is good news for Cook & Co.”
In the US, Wedbush believes the Black Friday to Christmas period will “be up modestly from iPhone 14” despite fears of declining consumer spending.
“Overall we believe for the December quarter iPhone revenue will be up modestly year over year and right now are tracking slightly ahead of our expectations into this Black Friday weekend which kicks off the holiday season," the analysts added.
Wedbush maintained its Outperform rating and $240 price target. Shares of Apple traded 1% lower Friday morning at $189.43.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel