Wedbush: Apple sells more than 40 million iPhons during the holiday season

According to Daniel Ives, an analyst at Wedbush, Apple sold more than 40 million iPhone 13 models during the holidays, setting a record for the company, despite the industry-wide chip shortage. Last year, it was reported that demand for the iPhone 13 model was slowing before the holidays as delivery estimates for the iPhone 13 model began to improve.

However, in a new note to investors, Ives said demand for the current iPhone cycle into 2022 remains strong, with quarterly demand exceeding supply in December reaching millions, which is a continuing positive sign for Apple as supply chain issues begin to resolve in the first half of the year.

Based on our supply chain inspections over the past few weeks, we believe that Apple's demand exceeded supply in the December quarter, with about 12 million units, and now with supply chain issues eased in the first half of 2012, this will add a tailwind to Apple's march and June quarterly voyages.

According to Ives, China has been Apple's main source of market power for the past 12 months and a key region for iPhone sales, especially in relation to the increase in market share brought about by the "multi-year super cycle" brought about by the iPhone 12 and iPhone 13.

About 230 million of the 975 million iPhone users worldwide have not upgraded in the past three and a half years, and the analyst believes that the new product is expected to be announced in the summer as expectations for Apple's much-anticipated mixed reality headset increase.

Analysts say the "key" to Apple's revaluation remains its services businesses, including Apple TV, iCloud, Apple TV+ and Apple's Fitness+, which Wedbush believes are now worth $1.5 trillion. On this basis, despite reports of tight supply, Apple's chip shortage is a "transitional issue" that "is nothing more than a speed bump on Apple's way to becoming the first $3 trillion company by 2022."