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Demand for Apple's current slate of iPhone 12 models remains robust despite a new iPhone launch just over the horizon, according to investment bank JP Morgan.
In a note to investors seen by AppleInsider, JP Morgan analyst Samik Chatterjee highlights a recent U.S. sales trend survey conducted by Wave7 Research. The survey analyzed sales volume across various carriers in June 2021.
According to the survey, there are limited indications that consumers are holding off on purchasing new iPhone 12 devices, even though the next iPhone lineup will likely debut in early September — just a couple of months away.
Chatterjee says that the sales data suggests that Apple will report better-than-expected iPhone sales in its third quarter. Apple also appears to be in a better inventory position than Android makers when it comes to chipset and critical component shortages.
Highlighting some key takeaways from the data, the analyst says that Samsung's market share in June 2021 was down slightly month-over-month. That's mostly attributable to inventory shortages. Apple's share of the market during the same period changed very little.
The iPhone 12 was the leading model in June, followed closely by the larger iPhone 12 Pro Max and iPhone 12 Pro, in that order. Sales of the iPhone 12 mini remained small but stable during the period.
Despite the larger size of the iPhone 12 Pro Max, the device is doing well. Store representatives indicate that the robust demand for the larger iPhone mode could be because of Zoom usage and its telephoto lens.
And while shortages of chipsets and other components have led to inventory problems for Android makers, Chatterjee notes that Apple has seen little — if any — impact from the supply issues.
"Across the stores, representatives are seeing little evidence of customers avoiding iPhone purchases ahead of the iPhone 13 launch, supporting robust volume trends," writes Chatterjee, adding that JP Morgan will continue to monitor the situation.
Chatterjee maintains his 12-month Apple price target of $165, which is based on applying a 30x price-to-earnings multiple on a 2022 earnings estimate of $5.61.
Shares of Apple were priced at $144.47 in intraday trading on Monday afternoon, down 0.43% on the day.
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3 Comments
I think what critics haven’t acknowledged is that what we are experiencing… is one l-o-n-g-g-gggg ‘Supercycle’ if you measure revenue year-to-year since Apple released the first iPhone.
For 45 years now the critics have been waiting for Apple to fail and vanish. I hope I’m around for the 50th anniversary of Apple’s founding. Remember the 20th anniversary Macintosh? I wonder what Apple might come up with to celebrate 50 years in business and what its market cap might be by then assuming , of course, the government doesn’t break it up into tiny pieces so others can ‘compete’.