Source: Apple
Bigger than sales of AirPods, literally and figuratively, are sales of iPhone. MacRumors has had a look a note from Wedbush analyst Daniel Ives. He says Apple sold over 40-million phones from the iPhone 13 line last quarter. If those numbers hold, that would put sales in record territory despite problems in the supply chain. That said, Ives thinks Apple could have sold more iPhones if it had had more iPhones to sell. Quoting his note:
Based on our supply chain checks over the last few weeks, we believe demand is outstripping supply for Apple by roughly 12 million units in the December quarter which now will add to the tailwinds for Cupertino in the March and June quarters as the supply chain issues ease in 1H22.
What a Difference a Day Makes
Ives issued his note on Sunday, just hours before Apple’s $3T milestone. As he has for some time, he predicted Apple hitting that mark soon - thanks to both hardware and Services. Apple 3.0 posted more of his note. Quoting that again:
The linchpin to Apple’s valuation re-rating remains its Services business which we believe is worth $1.5 trillion in the eyes of the Street, coupled by its flagship hardware ecosystem which is in the midst of its strongest product cycle in over a decade led by iPhone 13.
Ives thinks Apple’s Services will pass $100 billion in annual revenue by 2024, according to his note. As for the $3T milestone, Ives argued:
Hitting $3 trillion will be another watershed moment for Apple as the company continues to prove the doubters wrong with the renaissance of growth story playing out in Cupertino.
Ives has an “Outperform” rating on Apple shares. His price target on the shares is $200.
