iPhone Demand is Holding up ‘Better than Expected’ Claims Wedbush

In a recent note to investors, Wedbush analyst Daniel Ives has claimed that despite the ongoing Covid lockdowns in China resulting in various supply chain issues, the iPhone’s demand is holding up quite well (via Philip Elmer-DeWitt).

“As of now we believe iPhone demand is holding up slightly better than expected,” Ives wrote, while citing the various supply issues that have plagued Apple and the rest of the tech sector.

According to Cook & Co.’s guidance given last month, China’s Covid lockdowns could negatively impact June quarter revenues by between $4 billion and $8 billion.

Ives, however, added that these supply chain issues should peak in the June quarter and then subside into the key September/December quarters just in time for the new ‘iPhone 14’ series launch.

“We believe the initial bogey and production plans for iPhone 14 should be up flat to slightly higher from iPhone 13 out of the gates which speaks to Apple’s confidence that pent-up demand for this next release remain healthy despite the jittery macro.

With Apple’s services business set to be roughly $80 billion of annual revenues this year and set to grow at a steady “double digit” clip into 2023, we believe this key revenue stream remains at the epicenter of Apple’s multiple and growth story during this market storm.”

Wedbush gas maintained its outperform rating and $200 target for AAPL.