“Shares of Apple traded higher in premarket trading Monday on speculation of strong demand for the iPhone X, which the company began taking preorders for on Friday,” Thomas Franck reports for CNBC.
“A deluge of orders for the company’s new luxury phone has already pushed shipment times into December, according to analyst reports from both Drexel Hamilton and Nomura,” Franck reports. “‘We are encouraged that shipping lead times have held steady at 5-6 weeks because these pre-orders can be recognized as shipments in the December quarter,’ wrote Drexel Hamilton analyst Brian White on Monday. ‘Apple is taking the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultra-luxury smartphone market.'”
“While the iPhone X is set for release on Nov. 3, Apple allows customers to pre-order phones last Friday. While swells of pre-orders usually result in longer shipment times, analysts are finding that demand for the iPhone X is exceptional,” Franck reports. “‘We observed shipment times for the iPhone X tick up to 5-6 weeks within minutes of Apple opening pre-orders, where they have held over the weekend,’ wrote Nomura analyst Jeffrey Kvaal in a note to clients. ‘This is ahead of the 2-3 weeks during the iPhone 7 Plus launch and the 2-4 weeks during the iPhone 6 and 6s launch.'”
Read more in the full article here.
MacDailyNews Take: When you do not know the initial supply total or whether Apple is simply leaving their estimates at “5-6 weeks” so as to not overly dishearten those who’d like to preorder, you know pretty much nothing.
Regardless, the conclusion is the same: iPhone X is a seminal iPhone, highly sought after, and supply will not come close to satisfying demand for many months.
Got FedEx notification that my X is now in New Jersey. Apparently they were in a warehouse in Pennsylvania. This indicates to me that there was less of a supply shortage than last year when I ordered the 7+. Last year it shipped straight from Shenzhen.
Nice number, let’s see an all time high before Christmas.
It would be nice to see Apple’s market cap sitting around $900B by the end of the year. That would definitely be a Happy New Year. I’d really like to see Apple put a neat $200B space between Alphabet’s market cap. Alphabet’s P/E is just too high for Apple to deal with in terms of revenue growth.
Apple may never reach $1T but if it gets close to that mark and stays there for a couple of years, I’ll be satisfied. $1T may be just too much to ask for if Apple can only depend on iPhone sales.
I think eventually Apple may reach $1T if some things pan out. The refresh cycle for a lot of their desktop computers is getting longer, and that pipeline takes a while before products come up. but the phone and watch cycles are churning away nicely in my opinion.
I don’t believe that Apple is dependent on iPhone sales, they are the darling technology as desktops and laptops once were.
What concerns me the most is their software, let’s hope they can keep a handle on that.
I know a lot of people aren’t keen on Tim Cook but today’s stock value is higher than when he took the reigns. That makes me happy, for I think that a lot of others would have run Apple into the ground. Tim may not be the visionary that Jobs was but he’s moving Apple forward.