Apple is gearing up to launch the next version of its iconic iPhone next week, and investment firm Wedbush Securities said the unveiling will be another "pivotal moment" for Tim Cook and his team as they seek to keep the gravy train running.
Analyst Dan Ives, who has an outperform rating on Apple (AAPL), noted that supply chain improvements over the last few weeks have been "very firm," with a further slight improvement week over week. The fact that Apple (AAPL) has decided to launch its next iPhone earlier than usual is seen as a "massive achievement," Ives said, citing hiccups from earlier in the year.
"Hitting this target launch with the supply chain issues and zero Covid shutdown seen earlier this year is another massive achievement for Cook & Co," the analyst wrote in a note to clients.
Apple is widely expected to unveil the iPhone and other products on September 7, according to invitations sent out last week.
He added that the initial order of 90M iPhone 14 units has stayed firm and will be roughly flat when compared to the iPhone 13, speaking to the demand for Apple's (AAPL) next iPhone, despite the worries over the global economy.
Included in that demand is expected to be more iPhone Pro and Pro Max devices, which may see a $100 price increase over last year's models, something Ives said should help boost the average selling price going into fiscal 2023.
Ives also noted that Apple's Services business is expected to generate $90B or so in fiscal 2023 and is on pace to surpass $100B in fiscal 2024, making the Services business worth more than $1T by itself.
"In a nutshell, we believe Apple's growth story remains well intact with clear momentum around iPhone 14 around the corner despite the shaky macro," Ives wrote.
Last week, it was reported that the Department of Justice was in the "early stages" of drafting an antitrust complaint against Apple (AAPL) and could bring the lawsuit as soon as this year.
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