Apple (AAPL) is seeing stronger-than-expected iPhone shipments for the September quarter, according to Loop Capital analysts.
In their recent note, analysts indicated that iPhone shipments are tracking well above initial forecasts, prompting the firm to reiterate its Buy rating and $300 price target for Apple shares (NASDAQ:AAPL).
The firm's analysis suggests that September quarter iPhone shipments are expected to reach 52.5 million units, up from the previously estimated 49.2 million units.
This exceeds Wall Street's average estimate of 50 million units. The robust performance is attributed to a late-quarter surge in iPhone 15 orders and ongoing excitement surrounding the upcoming iPhone 16, as noted by Loop Capital.
The firm also adjusted its estimates for the average selling prices (ASPs) of iPhones for the September and December quarters.
The September quarter ASP is now projected at $926, slightly down from the earlier estimate of $931 but still above the Street's consensus of $886. The December quarter ASP is revised to $958 from $998, also higher than the Street's $923 projection.
This ASP adjustment places Apple's iPhone revenue for the September and December quarters at $48.6 billion and $79.0 billion, respectively, surpassing Wall Street's expectations of $45 billion and $74 billion.
Loop Capital also believes Apple is well-positioned to maintain its dominance in the tech landscape, especially with the growing importance of generative AI.
The firm wrote: "Our thesis is that AAPL has an opportunity the next few years to solidify itself as consumer's Gen AI "base camp" of choice, just as it did for social media 15 years ago."
With Apple's closed ecosystem and innovation in software, hardware, and silicon, Loop Capital expects Apple to remain a leader in tech adoption, particularly as it explores its own large language models (LLMs).