APPLE STOCK

Report: iPhone 13 sales strong during the holiday season, Apple’s $ 1.5 trillion service business


In a note to investors, Wedbush analyst Daniel Ives writes that sales of the iPhone 13 were strong in December and that Apple’s service business continues to grow.

As published on the Philip Elmer-DeWitt blog, Daniel Ives is more positive than ever regarding Apple’s iPhone 13. Previous report from Bloomberg, for example, said Apple was limited by how many iPhones could be assembled with available parts.

The company told its component suppliers that demand for the iPhone 13 line has weakened, people familiar with the matter said, signaling that some consumers have decided not to try to purchase an item that is hard to find, Bloomberg News reports.

Not only that Bloomberg It also reported that Apple has reduced its production plans for the iPhone 13 by 10 million units due to partial constraints, including the current global chip shortage. Now, Wedbush analyst Daniel Ives says the opposite:

(…) Instead, we are focused on the strong consumer demand story that is shaping up for the iPhone 13 by 2022. Based on our supply chain reviews over the past few weeks, we believe demand exceeds Apple’s supply by approximately 12 million units in the December quarter, which will now contribute to Cupertino return winds in March and June as supply chain problems ease in the first half 22. ‘

Ives believes that Apple is “in the middle of its strongest production cycle in more than a decade, led by the iPhone 13.” Wedbush says “a major part of Apple’s revaluation remains its service business, which we believe is worth $ 1.5 trillion in the eyes of the street, along with its leading hardware ecosystem.”

The service business continues to monetize Apple’s gold-based base and is poised to reach $ 100 billion + in annual revenue by 2024.

With the company expanding its business availability worldwide, with Fitness + arriving in more countries than ever, and the company preparing to launch its talked-about AR headphones, it’s only natural that services are a very important part of Apple’s ecosystem.

Last but not least, Ives says that Apple is “on the verge of becoming the first company with a market capitalization of 3 trillion in 2022.” By the end of 2021, analysts thought that Apple would already exceed this mark, but it seems that this will not happen for a long time.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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