Two weeks after the launch of Apple‘s (AAPL) iPhone 14, demand remains high for the Pro models, but cool for the mainstream models, analysts say. Still, the strong sales of the more expensive Pro models bode well for Apple’s profit margins.
The iPhone 14 series went on sale on September 16 after a week of pre-orders. The base model iPhone 14 starts at $799. The iPhone 14 Pro starts at $999 and the Pro Max starts at $1,099. The regular iPhone 14 and Pro version has a 6.1-inch screen, while the Pro Max version has a 6.7-inch screen. The Pro models have a faster processor and improved cameras compared to the base models.
“Demand for iPhones remains quite high for the Pro models, but weaker for the base models compared to a year ago, with 14 Pro and Pro Max turnaround times in line with better than 13 Pro and Pro Max turnaround times , offset by shorter lead times for base models,” JPMorgan analyst Samik Chatterjee said in a note to customers on Sunday.
JPMorgan is tracking the availability of iPhone 14 in key markets including the US, China, Germany and the UK. The US accounts for about 35% of iPhone shipments. China makes up about 15%. Germany and the UK each account for about 5%.
Chatterjee reiterated his overweight or buy recommendation for Apple stock with a price target of 200.
Apple shares soar on positive iPhone 14 sales
In today’s stock market, Apple shares were up 0.2% to close at 150.77.
Evercore ISI analyst Amit Daryanani said iPhone 14 demand remains strong, especially for the Pro models, but delivery times are getting shorter.
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“The data continues to point to consistently strong demand for the iPhone 14 Pro and Pro Max, which would likely have a material positive impact on both mix and margins,” he said in a note to customers on Friday.
Daryanani maintained his outperform rating on Apple stock with a price target of 190.
In the US, Apple and the major wireless carriers have launched a promotional campaign for the iPhone 14 family. Meanwhile, rival Samsung does a lot of advertising for its Galaxy Z Flip4 smartphone with foldable screen. And on October 6 AlphabetGoogle’s (GOOGL) unit is set to unveil its Pixel 7 and Pixel 7 Pro smartphones.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software, and semiconductor stocks.
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