Apple stock advanced on Monday amid reports that demand is strong for the high-end models of the company's iPhone 15 handsets.
Preorders for all four iPhone 15 models began on Friday with availability starting Sept. 22. The Cupertino, Calif.-based company introduced its 17th-generation smartphones at a media event on Sept. 12, along with its Apple Watch Series 9 smartwatches.
The premium iPhone 15 Pro and Pro Max models are "tracking strong out of the gates," Wedbush Securities analyst Daniel Ives said in a note to clients Sunday.
Meanwhile, preorders for the iPhone 15 series handsets overall are up roughly 10% to 12% from last year's iPhone 14 launch, Ives said.
Apple Stock Climbs On Preorder News
"The mix is heavily skewed towards iPhone 15 Pro/Pro Max, with Pro Max exceptionally strong in the U.S., China, India, and parts of Europe," Ives said. "This is a clear positive for Apple with ASPs (average selling prices) set to be a major tailwind" for the company.
Ives predicts the average selling price for the iPhone 15 series will be about $925. That would be up roughly $100 in the last 12 to 15 months.
Ives rates Apple stock as outperform with a price target of 240. On the stock market today, Apple stock climbed 1.7% to close at 177.97.
Get Ready To Wait For iPhone 15 Pro Units
Delivery times for some iPhone 15 Pro and Pro Max models have slipped into early November, Ives said.
The longer lead times might have to do with limited availability of those handsets, BofA Securities analyst Wamsi Mohan said in a report Monday. Apple's contract manufacturers have run into supply constraints for certain components such as the camera module for the iPhone 15 Pro Max.
Mohan rates Apple stock as neutral with a price target of 208.
Early data shows a "solid start" for iPhone 15 sales, Morgan Stanley analyst Erik Woodring said in a report Monday.
"Amidst the most negative investor sentiment (towards Apple) we've encountered in a decade, the iPhone 15 cycle appears to be starting out better than feared," Woodring said. "For example, lead times for the iPhone 15 Pro Max are 5-6 weeks on average, the longest of any model launched in the last 7 years."
Apple Stock Heavily Shorted
The positive iPhone 15 sales reports will pressure short sellers, said Jordan Klein, managing director for tech, media and telecom sector trading at Mizuho Securities.
The "entire hedge fund world is aggressively shorting AAPL right now," he said in a note to clients Monday. "While I am not a big fan of the long set-up in AAPL near term, I also would be careful on short side given these pending iPhone 15 data points."
Apple stock has an IBD Composite Rating of 75 out of 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Apple stock has formed a flat base with a buy point of 198.23, according to IBD MarketSmith charts.
However, in a negative sign, it is trading below its 50-day moving average line. Apple shares also are near the bottom of their base.
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