AAPL stock has been on a tear recently, as investors were surprised by demand for the new iPhone 7 and iPhone 7 Plus. Although the units may still sell less than the iPhone 6s, the gap appears to be far closer than expected. Before the devices went on sale, many business and financial analysts predicted iPhone sales would fall by about 10% year-over-year. Now, it seems that sales will be about the same.
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Good news is also coming out of the supply chain today, with Digitimes reporting that Apple is increasing component orders for iPhone 7 as it heads into the fourth quarter of the year. This implies strong demand for the phones, assuming the report can be trusted. Digitimes has a shaky track record on Apple product rumors but is generally accurate about supply chain matters like this one.
Digitimes says that touch panel orders for the phone screen are 20-30% higher than originally thought. Members of the supply chain expect Apple to produce 80-84 million iPhone 7 units in the second half of the year. This compares to total production of 85-90 million iPhone 6s in the year-ago period. Apple will announce initial iPhone sales as part of its fiscal quarterly earnings call, which will be held on October 27th.
AAPL stock closed at $113.09 yesterday, gaining 10% since the iPhone 7 was unveiled. The all-time high record for Apple company stock is $134. If the analysts are right and Apple’s official numbers back up the optimism, it is very possible for Apple to eclipse the $134 level in the coming months.