On Monday well-known Apple analyst and investment bank Wade Bush analyst Dan Ives (Dan Ives) said in an interview, Apple iPhone 14 series smartphone market demand to “stronger than the iPhone 13”.
Growing investor fears of a recession have put Apple shares, like other stocks, under significant downward pressure. But the launch of the new iPhone and Apple Watch could turn the tide. According to Ives, the two new products seem to show strong market demand from the start.
Consumer demand for Apple’s high-end models has been particularly strong. Ives estimated that 85 to 90 percent of all pre-orders for the new iPhone are for the iPhone 14 Pro and iPhone 14 Pro Max.
In an interview, Ives said, “That demand is very strong in terms of the average selling price of the product, which I think will be 8 to 10 percent higher than the iPhone 13.” “While demand growth is narrowing, at least so far, I think supply is more important than demand.”
Apple unveiled the iPhone 14 series of smartphones at its corporate headquarters on Sept. 7, with product pre-orders beginning Sept. 9 and available for in-store pickup by consumers on the 16th. The new Airpods Pro Apple headphones and Apple Watch UltraApple Watch began shipping on Sept. 23.
Other analysts also seem to endorse Ives’ view, and they all agree that early demand for Apple’s new products is quite strong.
J.P. Morgan analyst Samik Chatterjee wrote in a report, “Demand for the new iPhone has been strong since its release. The machine market still prefers the Pro model as it did last year, but delivery times for both new Pro models have been extended compared to last year.” “Lead times for the iPhone 14 series smartphones began to lengthen just one day after the product launch, compared to the iPhone 13 series smartphones where average lead times began to lengthen just one week after the product launch. Market demand for the remaining new products, such as the Apple Watch Ultra, is also quite strong in terms of lead times.”
The new Apple Watch Ultra, priced at $800, is also off to a good start, Chatterjee added.
Despite the initial numbers in Apple’s favor, Apple shares were hit hard during the September sell-off. Apple shares are down about 8 percent over the past month and have fallen 15 percent so far this year.
Ives, for his part, believes this pullback may be too much.
