What you need to know
- Apple's iPhone demand is holding up "better than expected" according to one analyst.
- Wedbush's Dan Ives says that Apple is trending better than management guidance in the quarter.
- He also says that Apple's Asia iPhone supply chain is proving "surprisingly resilient" despite zero-COVID measures in China.
Apple's iPhone demand is "better than expected" for the quarter and its supply chain is proving "surprisingly resilient", according to one analyst.
Wedbush's Dan Ives took to Twitter Friday stating:
As of now we believe iPhone demand is holding up better than expected (despite the various supply issues that have plagued Apple and the rest of the tech sector) and are trending better than management's guidance thus far in the quarter.
Ives notes that Apple's iPhone demand is "trending better" than guidance in the quarter so far. He also put to rest some concerns about the supply chain:
Over the last few weeks our Asia iPhone supply chain checks have been "surprisingly resilient" despite the zero Covid driven demand issues in China that remain the elephant in the room for the Apple story.
As Ives notes, Apple's supply chain is under pressure in mainland China because of strict zero-COVID measures implemented by the government. Some factories have had to suspend operations, with others operating at limited capacity or keeping employees in "closed-loop" environments to prevent the spread of the disease.
Ives says AAPL remains a "top tech pick" despite some woes of late. Apple's share price has fallen 24.54% since the turn of the year, however, Ives has previously said that Apple is one of a few stocks that represent a "generational buying opportunity." The tumble has seen Apple unseated as the world's most valuable company by Saudi Aramco. Not everyone is so bullish on the company's fortunes. This week it emerged that Michael Burry, the 'Big Short' investor who cashed in on the housing market collapse in the mid 2000's, has a $36 million short position against Apple, suggesting he expects the stock to fall in the short term.
The report follows news Friday revealing that Apple captured 51% of the U.S. smartphone market in Q1 thanks to the success of its best iPhone, the iPhone 13, and the iPhone SE, with shipments climbing to 19.9 million, a 19% increase on the same period last year.
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