Apple (AAPL) stock experienced a significant surge on Monday, fueled by robust preorder numbers for its newly released iPhone 17 series. The tech giant unveiled the latest iPhones last Tuesday, opening preorders on Friday, with in-store availability slated for this coming Friday. Early sales data points to a significant pent-up demand for upgrades, according to Wall Street analysts.
Wedbush Securities analyst Daniel Ives noted in a client note that iPhone 17 preorders are projected to be 5-10% higher than last year's figures. Ives estimates that approximately 20% of the 1.5 billion iPhone users globally haven't upgraded their devices in the past four years, suggesting a substantial potential market for the new models. While the iPhone 17 lacks AI features, its A19 processor boasts a 20% speed increase over the previous generation's A18 chip, a key selling point. Ives maintained his outperform rating on Apple stock, setting a price target of $270.
BofA Securities' analyst Wamsi Mohan observed that shipping times for the iPhone 17 are longer than those for the iPhone 16, indicating high demand. He specifically highlighted that the iPhone 17 Pro and Pro Max models, with shipping times of 18 and 25 days respectively, are experiencing greater demand compared to the standard iPhone 17. Mohan also reiterated his buy rating on Apple stock, aligning with Ives' $270 price target.
JPMorgan's Samik Chatterjee echoed the positive sentiment, suggesting that iPhone 17 availability trends signify stronger demand than last year's launch. He gave Apple stock an overweight rating with a price target of $255. However, not all analysts shared this optimism. Jefferies analyst Edison Lee expressed less enthusiasm for the preorder numbers, maintaining a hold rating on Apple stock and a price target of $205.82.
The market reacted positively to the overall positive outlook. Apple's stock climbed 1.1% to close at $236.70 on Monday. Although the delayed launch of the iPhone Air model in China due to eSIM licensing requirements poses a short-term challenge, the overwhelmingly positive response to the iPhone 17 series bodes well for Apple's continued success. The stock's performance further indicates a strong investor confidence in Apple's ability to capitalize on this renewed demand.
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Originally published at: https://www.investors.com/news/technology/apple-stock-aapl-iphone-17-preorders/
