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Apple (AAPL) Witnessing Robust iPhone 13 Pre Orders With China Leading the Way, Up Over 20% Compared to iPhone 12 Launch - Wedbush

September 23, 2021 8:24 AM EDT
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Wedbush analyst Dan Ives has weighed in on pre-orders for the new iPhone 13 lineup to note a strong demand with China leading the way.

Ives projects iPhone 13 pre-orders are currently running north of 20% ahead of Apple's launch last year, which he sees as “impressive.” As expected, China is leading the way with pre-orders now approaching 5-6 million based on the local e-commerce websites data.

“While supply chain issues are a lingering concern, delivery dates based on demand in the US are tracking in-line to slightly stronger than iPhone 12 (between 2-4 weeks delivery now depending on the model) which is a bullish sign coming out of the gates since launch. We continue to believe the models skew towards iPhone 13 Pro and Pro Max which is important around driving ASPs higher and overall top-line growth for Cupertino over the coming quarters. We also believe attractive carrier trade-ins and discounts from the likes of AT&T and Verizon are pulling in significant demand as many fence sitting Apple customers now look to trade in their iPhones (including many that have not upgraded in 3 years+) for the new iPhone 13,” Ives said in a client note.

The analyst outlines China as the key market for Apple as he projects about 20% of smartphone upgrades coming from this country.

“iPhone 13 continues the supercycle for Cupertino. Apple remains in the midst of its strongest overall product cycle in roughly a decade. Our Asia supply chain checks for 2H heading continue to put iPhone builds between 130M-150M. Asia supply chain builds for iPhone 13 are currently still in the ~90 million unit range compared to our initial iPhone 12 reads at 80 million units (pre-COVID) and represents a ~10% + increase YoY out of the gates. While this number will clearly move around over the coming months (chip shortage volatility adds to it), we believe this speaks to an increased confidence with Cook & Co. that this 5G driven product cycle will extend into 2022 and should also benefit from a post vaccine consumer "reopening environment,” Ives added.

Shares of Apple are up 1% in pre-open Thursday.



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