Friday marks one week since Apple's iPhone 14 was released, and yet another analyst is reporting strong demand for the more expensive Pro models over the base options.
The new iPhone is available in four different models: The base iPhone 14, the iPhone 14 Plus, the iPhone 14 Pro, and the iPhone 14 Pro Max. Since the first few days of the phones' launch, analysts have noted that demand for the Pro and Pro Max was much stronger than for the base iPhone 14 and iPhone 14 Plus options.
In fact, demand for the Pro models has been so strong that Wedbush analyst Dan Ives told Barron's that he sees a potential supply issue during the holiday season.
On Friday, Evercore ISI analyst Amit Daryanani, who rates Apple at Overweight with a $190 price target, wrote in a research note that he has also seen this trend.
"The data continues to suggest consistently strong demand for the iPhone 14 Pro and Pro Max, which would likely have a materially positive impact on both mix and margins," Daryanani wrote.
Daryanani said that even though lead times have come down a little since the phones were available for preorder, they remain high across the countries Evercore tracks for the Pro and Pro Max models. Lead times measure how long it takes a person to receive an item they ordered.
The "regular iPhone 14's lead times are tempered in comparison," he said.
Why are people leaning towards the pricier options for these new phones? BofA Securities analyst Wamsi Mohan wrote in an earlier research note that "the iPhone 14/14 Plus offer lesser differentiation than the Pro models as they have a similar form factor and same chip as last years' iPhones."
The strong sales of costlier phones are a positive sign for Apple.
"Given the delivery data we see and assuming supply is better today vs last year -- we continue to think iPhones are poised to see a higher ASP uplift given the mix shift towards the Pro models and that total demand is much stronger than expected," Daryanani wrote. ASP stands for average selling price, and with more customers gearing towards more expensive iPhone models recently, that bodes well for the metric.