- IDC recently estimated that iPhone shipments increased 3.5% in the third quarter.
- Analysts are optimistic about Apple’s iPhone 16 sales heading into the holiday season.
- Apple stock hit an intraday high earlier this week.
Fall is shaping up to be a good season for Tim Cook as Apple turns the corner for the holiday season.
Shipments of Apple’s cash cow iPhone are estimated to increase 3.5% year-over-year in the third quarter, according to a Monday report from market research firm IDC.
“Despite the gradual rollout of Apple Intelligence in markets outside the U.S., as many customers are expected to upgrade from iPhone 13, iPhone 12, and earlier models to new AI-enabled smartphones, Apple will continue to grow into the upcoming holiday season to ensure long-term purchasing potential,” said Nabila Popal, senior director of IDC’s data analytics team.
Wall Street welcomed a key metric: increased sales of the iPhone, which has faced intense competition over the past year, including from rivals in China.
Apple shares hit an intraday high on Tuesday after a report from IDC and analysts from Morgan Stanley, Bernstein and Evercore ISI reiterated buy ratings. Although it didn’t close at an all-time high, the stock is up nearly 25% since the beginning of the year, and Mr. Cook, who owns more than 3 million Apple shares, has increased his net worth to an estimated $2.2 billion, according to Forbes magazine. That’s what it means.
The final weeks of the third quarter included the launch of the iPhone 16, a product that started shipping to customers less than a month ago but without a major selling point. did., Generative AI feature called Apple Intelligence. Early analysis of pre-orders suggests demand for the new device may be weaker than expected, and Wall Street will be watching to see how well sales grow ahead of the company’s Oct. 31 earnings report. I was doing it.
The IDC report also showed that Apple’s competition in China has not slowed down. According to the report, shipments of Xiaomi, one of its local rivals, increased by 3.3% year-on-year in the third quarter.
Analysts expect Apple’s rollout of AI capabilities to boost demand for iPhones ahead of the holiday season.
“Despite facing regulatory hurdles and demand challenges that are likely to persist in key markets such as China and Indonesia,” said Jacob Born, technology analyst at Business Insider sister company eMarketer. “Apple’s global strategy looks sound.”
Bourne said the iPhone maker is positioned to maintain its strong performance through the remainder of this year. Apple Intelligence is expected to be officially released by the end of this month, and new Macs are also reportedly on the way.
“As we approach the holiday season, the combination of the new iPhone 16 and the rollout of Apple Intelligence could provide an even larger boost to sales in other regions, potentially offsetting these localized issues. ”Born added.
Some analysts who have looked at iPhone 16 pre-orders have suggested that faster delivery times may indicate weaker demand, but Morgan Stanley analyst Eric Woodring on Monday said said in a note that this shows that Apple’s supply chain mechanism is simply ready to meet demand.
Morningstar analyst William Kerwin told Business Insider that he believes Apple’s AI strategy will “drive unit sales growth over the next two years, especially for iPhone,” but said Apple’s stock price is “The market has gotten a little too excited and exceeded the company’s fundamentals,” he warned. in evaluating these future cash flows. ”
“Overall, the market’s confidence in the company is clear now that it has a concrete AI strategy, compared to the beginning of the year when the stock price was falling due to the perception that the company was lagging in the AI field,” Kerwin said. “It’s increasing,” he said.
Apple stock has yet to close above its all-time high of $237.23 set in July, but the company recently passed another milestone.
Sources confirmed to Business Insider that major chipmaker TSMC has begun producing chips for Apple at its Phoenix factory, marking the second time Cook announced it would use U.S. chips in Apple products for the first time in nearly a decade. I fulfilled my promise.