Strong iPhone 15 Demand Outpaces Supply, Goldman Sachs Predicts Over 20% Upside for Apple Shares
Goldman Sachs suggests that the high demand for Apple's newly released iPhone 15 family of devices is a positive sign for the company. After launching the new range of iPhone 15 devices last week and opening pre-orders in over 40 regions, Apple is set to make the devices available starting September 22, with further expansion into 21 additional markets on September 29. According to Goldman Sachs, there are currently delays of over eight weeks for select phones in certain regions, indicating that demand is surpassing supply.
Positive Indications of Consumer Demand
Goldman Sachs analyst Michael Ng views the extended lead times for the iPhone 15 Pro and iPhone 15 Pro Max as positive indications of consumer demand and potential price/mix increases. However, he acknowledges the lack of transparency into supply, which could be influenced by potential supply chain constraints, particularly for the Pro Max model.
Encouraging US Carrier Promotions
Goldman Sachs is also encouraged by the US carrier promotions available for the iPhone 15 family of devices, which align with previous years and provide opportunities for consumers to offset the full purchase price through eligible trade-ins. Major carriers like Verizon are offering promotions for the iPhone 15, further supporting the demand. However, Ng notes that the most attractive promotions often require consumers to subscribe to newer, more expensive plans.
Regional Insights and Competition
Regionally, mainland China is experiencing significant lead times for the iPhone 15 Pro and Pro Max models, with the Pro having lead times of around 4.5 weeks and the Pro Max ranging from six to eight weeks depending on the color. Despite the caveats of extrapolating delivery lead times to consumer demand, Ng finds the strong demand encouraging, especially considering the heightened competition from Huawei.
In summary, the strong demand for Apple's iPhone 15 devices, coupled with encouraging US carrier promotions, suggests a positive outlook for the company. While supply chain constraints and regional variations in lead times pose potential challenges, Goldman Sachs predicts over 20% upside for Apple shares. As the stock continues to perform well, Apple remains a key player in the smartphone market.
Conclusion
The strong demand for Apple's iPhone 15 and the potential for a 20% upside for Apple shares, as predicted by Goldman Sachs, offers a significant insight for new businesses, particularly those in the tech sector. The high demand for the new iPhone release suggests that consumers are still willing to invest in premium products, even in a competitive market.
Implications for New Businesses
For new businesses, this trend underscores the importance of innovation and quality in product development. It also highlights the potential benefits of strategic partnerships with carriers and other entities to offer promotions that can boost demand.
Strategic Considerations
However, businesses should also be aware of the challenges posed by supply chain constraints and the need for transparency in supply. Furthermore, the regional variations in demand indicate the importance of understanding and catering to specific market dynamics.
In conclusion, the strong demand for Apple's iPhone 15 and the positive outlook for the company's shares provide valuable insights for new businesses. By focusing on innovation, strategic partnerships, and understanding market dynamics, new businesses can navigate the competitive tech landscape and position themselves for success.
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