Apple (AAPL) on Pace to Sell Over 10 Million iPhones for Black Friday - Wedbush

November 26, 2021 11:41 AM EST
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Wedbush analyst Daniel Ives estimates that Apple (NASDAQ: AAPL) is on pace to sell 10 million iPhone units over the Black Friday weekend.

Ives, a prominent Apple bull who rates Apple with a Buy rating and a $185.00 per share price target, acknowledges supply chain issues Apple is still facing but he also notes that demand is likely outstripping supply.

“Despite the chip shortage and Rubik's Cube logistics that Apple (and every other technology, auto, and retail vendor) is dealing with we are seeing tremendous demand trends both in the US and China for iPhone 13 which is a positive sign that Apple could exceed selling 80 million iPhone units in the quarter with stronger Pro versions driving higher ASPs. We estimate that Apple is on pace to sell ~40 million iPhones between this Black Friday weekend and Christmas which would be record holiday pace for the company despite the lingering chip shortage limiting iPhone supply globally by roughly 10 million units based on our analysis,” the analyst said in a client note.

Ives also estimates that Apple will continue to enjoy high ASPs for Pro/Pro Max which, in combination with a high number of iPhones worldwide needing an upgrade, should pay long-term dividends for the Cupertino-based tech titan.

Overall, ongoing supply chain headwinds are nothing more than a “speed bump on a multi-year supercycle iPhone 12/13 that continues to play out.”

Moreover, the Wedbush analyst also expects Apple to experience strong demand for new AirPods.

Apple share price is down 2.7% today amid fresh virus concerns.

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