On Friday, Evercore ISI confirmed its Outperform rating and $250.00 price target for Apple (NASDAQ:AAPL), highlighting stable demand for the new iPhone 16 and 16 Pro models. According to the firm's analysis, pre-order lead times for the Pro and Pro Max versions have remained consistent since the previous check on September 27. In the United States, China, and Germany, delivery times for the standard iPhone 16 and the 16 Plus have also shown stability, while Japan and the United Kingdom experienced a decrease in wait times.
The analysis noted that the Pro model's delivery times in the U.S. are unchanged from last week at 17 days, a reduction from last year's 28 days. The Pro Max model is also holding steady with a 24-day delivery time, down from last year's 28 days. In Japan, delivery times for the Pro and Pro Max have fluctuated, currently at 8 and 28 days, respectively, compared to last week and the previous year.
China has seen a slight increase in delivery times for all models except the 16 Pro, while the Pro/Pro Max models can now be delivered in 19 and 26 days, respectively. This represents a change from the previous week, with the Pro model seeing a 3-day decrease and the Pro Max a 4-day increase, compared to last year's 25 days. Japan's Pro Max model has the most significant difference in delivery time, with a current 28-day lead time versus 25 days last year.
In the United Kingdom and Germany, lead times for the Pro and Pro Max models have remained stable, with slight variations for individual models. Both regions have lead times similar to those of the previous year. The firm concludes that the lead times for the iPhone Pro and Pro Max models are holding up well, with the U.S. showing shorter delivery times than last year, while China and Japan show mixed results, and the UK and Germany remain relatively stable.
Evercore ISI suggests that the consistent lead times may support a gradual increase in iPhone sales, potentially influenced by the rollout of Apple Intelligence features. The firm maintains its positive outlook on Apple's stock with a steady price target of $250.
In other recent news, Apple Inc (NASDAQ:AAPL). is set for a robust growth phase, primarily driven by the anticipated demand for its artificial intelligence (AI) services in the iPhone 16, as noted by Mizuho analysts. These AI services are expected to boost demand for various iPhone components, including application processors, cameras, sensors, microphones, DRAM, and batteries. Apple's in-house modems, slated to debut with the iPhone SE4 in 2025, are also expected to significantly impact the value chain.
On the financial front, Apple's App Store revenues have shown a growth rate of 13%, as reported by Evercore ISI. This growth is expected to contribute to Apple's Services revenue, which is projected to increase by approximately 14%. BofA Securities and JPMorgan (NYSE:JPM) have maintained their positive outlook on Apple, reiterating their respective Buy and Overweight ratings.
Apple is also preparing for the production of a new iPhone SE and iPad Air models, although no official statements regarding the specifications, pricing, or release dates have been released. In a separate development, the National Labor Relations Board (NLRB) has filed a complaint against Apple, accusing the company of implementing illegal workplace rules that interfere with employees' rights to organize and advocate for improved working conditions.
Finally, Apple's supply chain might face disruptions due to a recent fire at a Tata Group facility in Tamil Nadu, which has halted the production of iPhone components.
InvestingPro Insights
To complement Evercore ISI's analysis of Apple's iPhone demand and stock outlook, let's delve into some key financial metrics and insights from InvestingPro.
Apple's market capitalization stands at an impressive $3.42 trillion, reflecting its dominant position in the technology sector. The company's P/E ratio of 34.07 suggests that investors are willing to pay a premium for Apple's earnings, which aligns with the market's positive sentiment and Evercore's Outperform rating.
InvestingPro Tips highlight Apple's strong financial position and market performance. The company has raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 0.44%, may appeal to income-focused investors.
Apple's revenue for the last twelve months reached $385.6 billion, with a slight growth of 0.43%. While this growth rate is modest, it's important to note that Apple operates in a highly competitive and mature market. The company's ability to maintain its revenue in this environment speaks to its robust business model and brand strength.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips that could provide deeper insights into Apple's financial health and market position.
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