Buy Apple On The iPhone 7 Launch, As Demand Is Exceeding Supply: Citi

Courtesy of Benzinga.

Citi’s store checks suggest there has been robust preorder activity for the iPhone 7. Jim Suva maintained a Buy rating on Apple Inc. (NASDAQ: AAPL), with a target price of $120.

Suva mentioned that store checks at Apple, as well as at carrier stores in the U.S., Canada and Asia revealed that preorder activity had been strong.

“Supply remains the gating factor for iPhone 7 Plus and iPhone 7 Jet Black models which arrived in very limited quantities at stores, and in some cases only to suffice for those who had pre ordered and were picking it up in the Apple store,” the analyst stated.

Related Link: Why The iPhone 7 Plus Outselling The iPhone 7 Is Notable

Suva explained that lines had been short at carrier stores because these stores already informed the consumer regarding limited stock availability. Therefore, most of the people had been there to pick up their pre-ordered phones.

The analyst believes the demand for the iPhone 7 Plus is being driven by the improved camera features.

Watch Series 2 & Airpod

On the other hand, interest has been muted for Apple Watch Series 2, while the AirPod will not be available until Octobers, although early interest in the product appears modest.

“While it is difficult to extrapolate weekend sales, preorders or even a few days of sales, to overall quarterly unit estimates, we note increased promotion commotion from carriers,” Suva pointed out.

The iPhone 8 phones, expected in 2017, are likely to driver further upgrades within the installed base.

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