Early Apple iPhone 14 Lead Times Transcend Expectations, Says This Analyst

Morgan Stanley analyst Erik Woodring reiterated Overweight on Apple Inc AAPL and a $180 price target.
Woodring highlighted that the critical investor debate entering last week's iPhone launch event was how resilient iPhone 14 demand would be in the face of persistent inflation and growing macro uncertainty, proving to be headwinds to consumer electronics spending intentions.
However, early iPhone 14 Pro series lead times in the U.S. are more robust than expected.
Erik points out that early pre-order commentary from markets such as China and India is similarly robust.
Additionally, early iPhone 14 Pro series adoption is a bit stronger than he expected, showing Apple's strategy of high-end model differentiation appears to be paying off.
It could be a potential incremental tailwind to iPhone ASPs in FY23, where he is already 5% ahead of consensus at $900.
Collectively, these early cycle data points are helping to dispel fears of material iPhone weakness, aligning with Erik's view that the iPhone is a more "staples-like" product more resilient to macro shocks.
Price Action: AAPL shares traded lower by 1.82% at $152.49 on the last check Thursday.

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