Daniel Ives dismisses Bloomberg ‘News’ FUD, reiterates $220 Apple price target

Apple 3.0’s Philip Elmer-DeWitt reports Wednesday on a Wedbush note to customers from CEO Daniel Ives about Bloomberg’s latest “News” FUD hit on Apple (see: As expected, “Apple has cut orders of iPhone 14 “FUD) in which Ives reiterates that demand for the iPhone 14 Pro remains solid, creating a significantly stronger mix for the iPhone 14 than the iPhone 13, which” means much higher ASPs and a clear favorable wind for Apple in the fiscal year 23 at this rate. “

iPhone 14 Pro Max
Apple’s flagship iPhone 14 Pro Max

In his note to customers, Ives maintained his “Outperform” rating and $ 220 price target on Apple.

Philip Elmer-DeWitt for Apple 3.0:

Give a note to Wedbush customers who landed on my desktop on Wednesday:

Last night Bloomberg reported that Apple has decided to keep production for the iPhone 14 and “not increase as expected” given the lower consumer demand … Our view is that the stock “does not increase production” (~ 6 million unit) obscures the background story for iPhone 14 Pro question who is currently playing on the pitch.

Demand for the iPhone Pro remains solid based on all the data points we see in the US and China and is leaning towards a mix of 85% -90% for the iPhone 14 compared to around 65% with the iPhone 13. This means much higher ASPs and a clear favorable wind for Apple in Fiscal 23 at this rate …

As we have discussed, the initial units of the iPhone 14 were around 90 million and it is in line with the iPhone 13 and this remains firm / unchanged. However, the mix has shifted heavily towards Pro while base model iPhone sales have clearly been underwhelming and softer than Apple expected.

Our positive thesis about Apple remains unchanged and we do not rule out that demand for the iPhone 14 Pro is robust and this will allow Apple to overcome short-term macro headwinds much better than Street feared.

Read more about Ives’ note on Apple 3.0 here.

MacDailyNews takes: Same. Read more about our opinion here.

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