Apple will meet Q3 revenue projections thanks to strong iPhone demand.


Apple recently revealed that the iPhone 14 series will shortly go into commercial production. Since this update, the financial market has seen new reports claiming that Apple's iPhone is the main cause of its great revenue generating because of a vast amount of sales.

Despite supply issues plaguing the tech industry, Wedbush analyst Daniel Ives asserts in a note to investors received by AppleInsider that he expects iPhone demand to hold up slightly better than predicted. He believes Q3 2022 financial numbers for Apple will be in line with predictions.

When Apple releases its financial results for the June quarter, Wedbush expects that it will likely beat Wall Street expectations.

Analysts predict that Apple will report revenue of approximately $82 billion and earnings-per-share of $1.16 for the June quarter.

However, Wall Street still expects Apple to have problems in the June quarter. "All eyes" are reportedly on the iPhone 14 supply and demand cycle, according to Ives. The aggressive product pipeline that Apple is concentrating on for 2023 may include a new mixed-reality headset.

The June quarter will be the "peak anxiety" period for Apple's supply chain problems. Ives believes that any supply or Covid delays will end in the third quarters of September and December, although Apple warned of a $4 billion to $8 billion revenue hit. We recently revealed that there were supply chain concerns with the display for the iPhone 14 Max model.

As is traditional, Apple's installed base is the key to weathering the macroeconomic storms. Ives still maintains that the iPhone upgrade cycle is obstinate despite the fact that about 240 million of Apple's 1 billion iPhone owners have not yet upgraded their devices.

Going into the second half of 2022 and 2023, the state of the services appears to be favourable. According to Ives, Apple's services alone are worth more than $1 trillion. When considering its hardware, he finds the risk/reward to be "very tempting at current values."

Even though the jittery market environment is making it unpleasant for tech companies, we think Apple's growth story is still very much intact despite the uncertain macro, according to Ives.

Ives still has an Outperform rating for Apple and a $200 price estimate for the upcoming year. His goal is based on an analysis of his 2022 estimates as a whole, which equates to an 18x multiple for services at $1.5 trillion and a 7x multiple for Apple's hardware segment at $2.1 trillion.

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