Despite some supply chain issues, Wedbush Securities, an investment firm, believes that there have been “discernible” improvements in Apple’s (NASDAQ: AAPL) iPhone 13 demand around the world.
Analyst Dan Ives, who rates Apple (AAPL) as outperform and has a $200 price target, noted that these improvements bode well not only for the upcoming June quarter, but for the next iPhone release as well. According to Ives, the iPhone SE with 5G is expected to sell around 30 million units, making it the strongest product cycle for Apple since 2015, according to Ives.
“While the risk-off dynamic in the market has been front and centre for tech investors, with Apple’s stock also under pressure in 2022 along with other tech stalwarts, we believe the company is setting up for a monster growth cycle over the next 12 to 18 months that is not baked into shares at current levels,” wrote Ives in a note to clients.
Apple’s (AAPL) stock dropped by 0.5 percent to $167.98 in Tuesday’s premarket trade.
Apple (AAPL) is gaining market share in China to the tune of about 300 basis points over the last year, thanks to the iPhone 12 and iPhone 13. For Apple (AAPL), this is a positive for the March quarter, as consumers in other countries are purchasing more expensive iPhones, many of which are the new Pro and Pro Max models.
After the Federal Reserve gave a “bright green light” to owning oversold tech stocks, Ives said last week that Apple (AAPL) is still the top tech stock.
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