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Despite September being a bad month for the broader stock market, Apple appears to look strong with iPhone lovers contributing to the high pre-order data.
Apple Inc (NASDAQ: AAPL) saw its shares rally the most since May on high pre-order data for the new iPhones. The pre-order data show that the iPhone 14 Pro Max is the best-selling model, and the phone is doing better than its older version did within the same period. Apple shares popped 3.9%, representing the tech giant’s biggest single-day gain since the 27th of May due to the strong pre-order volume. The company’s stock closed over its 200-day moving average for the first time since August.
At press time, Apple stock is trading up 0.62% to $164.44 in pre-market trading. It appears Apple is now moving towards increases with a 5.76% addition in the last five days as it records high pre-order of its new products. Data further show that the iPhone maker’s stock has advanced 23.10% in the last three months and spiked more than 10% over the past year. However, the company’s shares have plunged almost 8% since January and dropped 5.55% over the past month.
Apple Records Strong Pre-Order for New Products
Despite September being a bad month for the broader stock market, Apple appears to look strong with iPhone lovers contributing to the high pre-order data. Analysts have noted the high demand for new Apple iPhones and its smartwatch. Apple launched the iPhone 14 series on the 7th of September, consisting of the iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 14 Pro Max. While pre-order began on the 9th of September, deliveries or in-store pick-up started on the 16th of September. The remaining new Apple products, including the AirPods Pro and Apple Watch Ultra, are still available for pre-order and will be rolled out from the 23rd of September.
JPMorgan analyst Samik Chatterjee wrote about the strong iPhone demand after the launch of the new product. He compared the current data to the previous year’s and noted the Pro models are the most favored. The analyst added:
“In the US, Week 1 delivery timing for the 14 and 14 Plus tracks to the first available dates (Sept.16 and Oct.7), which is consistent with both the 13 mini and 13 tracking to the first available dates, whereas the Pro and Pro Max lead times have extended lead times of 35 and 42 days, respectively. Relatively to in-store, lead times tracks to the first available dates, albeit with limited SKU’s available for the 14 Pro and 14 Pro Max. Recall, the US accounts for ~35% of iPhone shipments.”
Notably, the iPhone 14 goes at the same price as the iPhone 13 sold when it was released last year. The base iPhone 14 in the US costs $799, while iPhone 14 Pro Max is for $1,099, the same price as the iPhone 13 Pro Max when it hit the store a year ago.