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iPhone 17 demand may be up a whopping 20% to 30% over iPhone 16

MacDailyNews

Sep 22

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Apple’s new iPhone 17 Pro and iPhone 17 Pro Max

The Information reported, just before the weekend, that Apple has instructed suppliers to boost production of components for the $799 iPhone 17 by some 30%, prioritizing it over the $1,099 iPhone 17 Pro.

Rich Smith for The Motley Fool:
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As The Fly reports, this suggests stronger demand for the cheaper phone than the more expensive — in line with corollary reports that consumers are feeling stretched and are starting to pinch pennies.
That’s the bad news.
The good news, as Bank of America just observed, is that shipping lead times for iPhone 17 orders have expanded to 18 days — nearly twice the 10-day lead times observed for the iPhone 16 last year. And this suggests strong demand, albeit perhaps for cheaper iPhones.
Last but not least, we learned today that Wedbush is raising its price target on Apple stock to $310 a share, implying more than 21% upside in Apple stock. Wedbush says it’s “positively surprised” to see iPhone 17 demand tracking 10% to 15% ahead of demand for the iPhone 16 last year. iPhone production is up at least 20% this year, says the banker, arguing investors are “clearly underestimating this iPhone cycle.”
Even assuming margins are lower on cheaper iPhones, 20% to 30% demand growth would imply Apple’s earnings can grow faster than the 12% long-term growth rate most analysts forecast for Apple.

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MacDailyNews Take: Adjusting the iPhone production mix is typical after getting the pre-order and launch day data. Regardless, 20% to 30% growth is very significant. Hence today’s AAPL pop.

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