Apple (AAPL) – Get Free Report shares edged higher Friday as the tech giant’s latest iPhone 15 goes on full public sale for the first time since its launch earlier this month.
Apple unveiled the four new iPhones, which include improved battery life, updated cameras and new titanium frame, at its annual launch event, deemed ‘Wonderlust’ on September 12.
Reports suggest hundreds of customers lined up outside Apple’s flagship store in Shanghai Friday, with similar queuing reported outside stores in India.
Early reception, as well as consumer demand heading into the holiday season, will be crucial for the success of the Apple’s latest smartphone, given that overall pricing was largely unchanged from previous iterations, with the top-of-the-line iPhone 15 Pro Max holding at $1,199.
Apple’s iPhone revenues, however, have been in decline over two of the past three quarters, and indications from a host of rivals, as well as chipmakers and assemblers, suggest demand has been waning amid a pullback in consumer spending and persistently high inflation in major global economies.
China’s reported ban on the use of iPhones by government employees and state-backed enterprises is also adding an extra headwind to sales in one of its most important markets, while cash-flow pressures at U.S. wireless carries could limit the amount of support they’re willing to provide customers to upgrade within existing contracts.
Meanwhile, discretionary spending n the U.S. is starting to fade. And a moratorium on student-loan payments has been lifted, which is forecast to take around $100 billion from overall consumer spending in the U.S. each year, according to Oxford Economics.
“Despite those concerns, we expect iPhone revenue to rise in the mid to high single digits in the
fiscal first quarter that ends December 31st,”said Gimmie Credit analyst Dave Novosel.
“Growth should be driven by attractive offers from
the wireless carriers in conjunction with the introduction of the new iPhones, an easy comparison to last year, indications of strong pre-orders based on announced shipment delays
last week, and a shift in mix toward higher-end models,” he added. “However, we expect growth to slow
from that point forward, leaving iPhone sales up roughly 5% for the full year.”
Apple shares were marked 0.62% higher in pre-market trading to indicate an opening bell price of $175.00 each.
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