On Friday, Evercore ISI maintained its Outperform rating and $250.00 price target for Apple Inc. (NASDAQ:AAPL), following an analysis of the iPhone 16 and 16 Pro lineup's pre-order lead times. The new models, available for pre-order since September 13, have shown mixed trends in delivery times, with notable increases for the Pro/Pro Max versions in certain regions.
The Pro and Pro Max models are experiencing longer wait times for delivery in America and Japan, with current lead times reaching 19 days, up by 2 days since Monday. However, these times are still shorter than the 35-day wait from the previous year. In China, the Pro model now has a lead time of 22 days, a slight increase from last week's 20 days, but still below last year's 25 to 32-day range.
In the UK and Germany, lead times for the standard iPhone 16 and 16 Plus have decreased, while the Pro/Pro Max models have seen a 2 to 5-day increase. Despite this, the current wait times remain significantly lower than the previous year, by 15 to 20 days.
The firm notes that the incremental rise in lead times since Monday is a positive sign, but the overall decline from last year's figures is the primary point of interest. The analysis didn't specify the impact of supply on delivery times, but suggested that the data supports the expectation of a gradual increase in iPhone sales as new Apple Intelligence features are introduced.
In conclusion, Evercore ISI's stance on Apple's stock remains unchanged, with the expectation that the company's sales momentum will continue, as indicated by the pre-order lead times for the latest iPhone models.
In other recent news, Huawei Technologies launched the Mate XT, a high-end smartphone with a tri-fold design, despite potential supply chain issues that could affect production. The company has received 6.5 million pre-orders, but analysts warn that production yield issues might limit the initial production to 500,000 units.
The European Commission has taken action against Apple to ensure compliance with the Digital Markets Act, which aims to foster competition by promoting interoperability. The proceedings will clarify the steps Apple must take to meet its obligations, focusing on iOS and iPadOS systems' interoperability with smartwatches, headphones, and other internet-connected devices.
On the legal front, Google's parent company, Alphabet (NASDAQ:GOOGL) Inc., is seeking dismissal of a $9.3 billion antitrust lawsuit in the UK, which accuses Google of abusing its dominance in the online search market. The lawsuit alleges that Google's control of the market allows it to inflate the cost of search advertising services, a cost ultimately borne by consumers.
Morgan Stanley maintained its Overweight rating and $273.00 price target for Apple Inc., despite extending lead times for the iPhone 16. The firm noted a mixed trend in lead times by model and suggested that the trend over the next ten days could be more indicative of future performance.
Finally, CFRA maintained its Buy rating on Apple shares (NASDAQ:AAPL), with a $260.00 price target, despite concerns about shorter pre-order lead times and lower initial orders for the new iPhone 16 Pro devices.
The firm forecasts mid-to-high single-digit percentage growth for the iPhone 16 and subsequent iPhone 17 cycle, signaling a positive outlook for the tech giant's future performance.
InvestingPro Insights
As Apple Inc. (NASDAQ:AAPL) garners attention with its new iPhone 16 and 16 Pro lineup, InvestingPro data provides a deeper financial perspective on the company's performance. With a robust market cap of $3.52 trillion, Apple stands as a tech behemoth. The company's P/E ratio, at 35.08, indicates a high earnings multiple, which is further reflected in a Price/Book ratio of 52.43 for the last twelve months as of Q3 2024. These metrics suggest that the market has strong confidence in Apple's future earnings potential.
InvestingPro Tips highlight Apple's consistency in rewarding shareholders, having raised its dividend for 12 consecutive years, and maintaining dividend payments for 13 consecutive years. The company's ability to cover interest payments with its cash flows and its moderate level of debt underline a stable financial structure. For investors seeking detailed analysis, there are 16 additional InvestingPro Tips available, including insights on Apple's valuation multiples and stock volatility. These tips can be accessed for a comprehensive investment strategy at https://www.investing.com/pro/AAPL.
With the next earnings date slated for October 24, 2024, and a fair value estimate by analysts at $243, compared to the InvestingPro Fair Value of $178.77, investors and analysts will be closely watching Apple's financial health and market performance. The current pre-order trends for the iPhone 16 series, combined with the financial data and InvestingPro Tips, offer a multifaceted view of Apple's market presence and potential for sustained growth.
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