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Analysts are expressing optimism regarding the tech giant’s pre-orders for the latest iPhone 15, saying that demand is surpassing expectations. Accordingly, delivery times for the iPhone 15 Pro have extended into November for certain configurations, indicating strong demand.
According to Morgan Stanley, the early data indicates a solid start to the cycle with the iPhone 15 Pro Max experiencing the longest lead times of any model launched in the past seven years. China data points are also exceeding expectations.
Goldman Sachs analysts flag the extended lead times for high-end models.
“We view the extended lead times for the iPhone 15 Pro and iPhone 15 Pro Max as a positive indication of consumer demand and for increasing price/mix, but recognize that there is little transparency into supply, which could be impacted by potential supply chain constraints, particularly in the Pro Max,” they said in a client note.
“Separately, we’re encouraged by US carrier promotions available for the iPhone 15 family of devices, which appear largely consistent with year-ago and provide opportunities for consumers to cover the full purchase price of a new phone with an eligible trade-in; that said, the most attractive promotions require consumers to have – or upgrade to – some of the carrier’s newer, more expensive plans,” the analysts added.
Wedbush analysts described carrier promotions as “eye-popping”, serving as “a major catalyst for upgrades this holiday season.”
“We believe iPhone units should level out in the 225 million unit range in FY24 and a rising ASP lift which is being underestimated by the Street as Cupertino has a massive pent-up installed base upgrade cycle now underway. This speaks to the underlying demand story that Apple anticipates for this next iPhone release with our estimates that ~250 million+ of 1.2 billion iPhone users worldwide have not upgraded their phones in over 4 years,” they wrote.
