Wedbush: Apple iPhone demand in Q4 2021 is 12 million units higher than supply

Daniel Ives, an analyst at investment firm Wedbush, said that based on communications with the supply chain in the past few weeks, "We believe that iPhone demand in the December quarter was 12 million units higher than supply. As supply issues ease in the first half of this year, this demand will boost Apple's performance in the March and June quarters."

Ives estimates that iPhone sales in the year-end quarter exceeded 40 million, a record. China is a key source of growth for Apple, and Ives estimates that Apple's market share in China has increased by about 250 basis points in the past 12 months.

Apple's business is more than just hardware sales. Apple's market value is just one step away from $3 trillion, and the service business is an important support. Ives said that the service business will "further monetize Apple's huge user base, with revenue exceeding $100 billion in 2024," and Wall Street values ​​it at up to $1.5 trillion. Apple Glasses, which may be released in the second half of this year, are "highly anticipated," and the launch of self-driving cars in 2025 will further boost Apple's market value.

Ives maintained his "outperform" rating and $200 price target for Apple shares, which means Apple shares have 16% upside potential in the next 12 months.

Phoenix Technology