Could Apple turn things around with the iPhone 7? Maybe so, judging by recent reports from BTIG and Citigroup.
BTIG’s Walter Piecyk on Friday released a two-week iPhone update, comparing shipment times from previous years to get a better handle on iPhone 7 demand. What Piecyk found were iPhone 7 shipping dates that far exceeded the wait times for previous iterations of Apple’s flagship device. For example, ship times for all iPhone 7 models are hovering between 14 and 21 days compared to just three to five days for last year’s iPhone 6s and seven to 10 days for the record-breaking iPhone 6 the year prior.
On a device basis, supplies of the Jet Black iPhone 7 and nearly all models of the iPhone 7 Plus are the tightest, Piecyk found.
According to Piecyk, though, the extended wait times for the new device are actually a good sign.
“The initial results indicate longer waits for iPhones and are supportive to our thesis that Apple can return to growth in the December quarter,” Piecyk wrote. “Clearly, Apple’s allocation of iPhone supply can impact this analysis, but the growth in orders cited by the operators we have spoken with in the United States AND Europe over the past two weeks suggest that demand is likely the driving factor.”
But Piecyk isn’t the only one who sees promise in the iPhone 7.
Citigroup’s Jim Suva on Friday also noted what appears to be good demand for the new device. Suva’s note was cited by Barron’s.
“Early indication of iPhone 7 demand at launch appears strong based on our own U.S., Canada, European and Asian store checks,” Suva wrote. “Specifically in U.S., we believe that heighted promotion activity from carriers (free iPhone 7 with a specified trade in) to drive market share gains, coupled with Samsung Note 7 recalls, are likely reasons for increased interest and strong pre order activity noted in the U.S.”
Based on the strength of demand, Suva likewise forecast a good December quarter for Apple, raiding his iPhone shipment estimates from 73 million to 79.4 million.
Suva said he expects Apple to come in with revenue of $74.4 billion in its fiscal Q1, with earnings per share of $3.15.
In the quarter ended June 30, Apple’s overall revenue dropped 15 percent to $42.4 billion while sales of the iPhone also dropped 15 percent to 40.4 million. The company’s sales, however, have historically increased around its fall device launches and holiday sales period.
