Apple (NASDAQ:AAPL) is strong heading into the holiday season, according to analysts at Wedbush on Friday, with iPhone demand in China remaining firm.
The analysts, who have an Outperform rating and $240 price target on the stock, said their firm’s recent Asia supply chain checks “remain very firm for Apple’s iPhone 15 into an important holiday season with particular strength in the China region” despite the negative bear noise a few months ago.
They added that they have not seen any major negative revisions around iPhone units coming out of Asia into the holiday season/early 2024, which speaks to what they “believe is a very consistent consumer demand environment around iPhone 15 so far, which is good news for Cook & Co.”
The firm also noted that the “US has been a clear bright spot for Apple since the iPhone 15 launch,” and they “believe the key stretch from Black Friday into Christmas will be up modestly from iPhone 14 despite fears of being a disappointment from the bears coming out of the September timeframe.
Wedbush sees December quarter iPhone revenue up modestly year-over-year, currently tracking slightly ahead of its expectations into this Black Friday weekend.
“With Service revenue back to double-digit growth and iPhone units that should be in the ~225 million range for FY24, we believe the ‘growth demise story’ of Apple being spun by bears is a dynamic we have seen constantly over the past decade, and this is just another chapter in that book,” the analysts said.
