Despite supply constraints, Apple’s iPhone 13 models continue to sell well compared to previous models, according to new carrier research data obtained by JP Morgan.
JP Morgan analyst Samik Chatterjee wrote in a note to investors seen by AppleInsider that the investment bank’s optimistic outlook for iPhone 13 demand in 2022 is bolstered by additional data points. Chatterjee, on the other hand, predicts that the iPhone 13 cycle, which has surpassed the iPhone 12, will see record volumes in 2022.
To some extent, momentum has slowed due to supply constraints, following the launch of Samsung Galaxy S22 and improved management by Android manufacturers.
Shares of Apple’s iPhone dipped below 70% in Verizon and T-Mobile stores, with the majority indicating that demand for Samsung’s Galaxy S22 was higher than in 2021. In addition, the Android model’s supply has been able to keep up with consumer demand.
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Wave7 Research believes the data supports a structurally higher market share compared to past shares, but Apple’s share remains above historical levels when compared to typical seasonal share, writes Chatterjee.
While retailer stock of the iPhone 13 and iPhone 13 Pro is still inconsistent, the line’s availability online has stabilised. The supply of the Pro models, which had longer lead times at the beginning of the launch cycle, has improved significantly, according to carrier representatives.
Older iPhone sales remain low at carrier stores, according to JP Morgan, which estimates that 3-4 percent of all Apple devices sold are older iPhone models. Many iPhones older than the iPhone 12 are “increasingly difficult to find.”
With the recent launch of the iPhone SE 3, we expect older models to continue their decline in popularity because the 5G-enabled SE 3 now presents an affordable 5G phone for the installed base of older phones,” writes Chatterjee.
After taking into account a profit-to-earnings multiple of 30x and an earnings estimate of $6.90 per share for the current calendar year, Chatterjee keeps his 12-month Apple price target at $210.