Apple iPhone Sales Remain Strong Despite Looming New Handset Launch

Investors2021-08-24

Apple iPhone sales remained strong in July in the U.S. despite the upcoming launch of the company's 15th-generation smartphones next month. Apple stock rose on Monday.

In a note to clients, JPMorgan analyst Samik Chatterjee said iPhone sales have been buoyed "by resilient demand for the iPhone 12 series as well as a better inventory position for Apple relative to Samsung and other Android" handset vendors.

Chatterjee reiterated his overweight, or buy, rating on Apple stock with a price target of 180.

In afternoon trading on the stock market today, Apple stock rose 1.1%, near 149.80.

Apple Stock Near Record High

"We view the resilience and better-than-seasonal trends in iPhone 12 volumes as one of the first in a series of catalysts for the shares in the upcoming months," Chatterjee said.

Other catalysts include the soon-to-launch iPhone 13 series phones that were "surpassing low investor expectations" in volumes sold. Analysts expect Apple to introduce its iPhone 13 handsets in mid-September.

Another catalyst is overall iPhone sales growth because of the 5G wireless upgrade cycle, he said.

Wave7 Research checked into sales trends across various U.S. carriers via surveys. They showed Apple has sidestepped the typical seasonality ahead of a September iPhone launch, Chatterjee said.

Apple stock is trading just below its all-time high 151.68, reached on Aug. 17.

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