Apple in Focus: Anticipation Ahead of the Halloween Quarterly Report

In anticipation of Apple's eagerly awaited quarterly report, set to be released on Halloween, investors are closely watching recent developments with the iPhone 16. Despite a high-profile launch featuring CEO Tim Cook and "Tonight Show" host Jimmy Fallon at the Apple flagship in New York, sales figures for the new iPhone model have fallen short of expectations. Analysts, including Ming-Chi Kuo, point out that demand for the base models of the iPhone 16 is weak compared to the previous year, while the Pro models are performing better and meeting expectations. It turns out that delivery times for the iPhone 16 Pro are shorter than for the previous model, indicating a recovering demand. Meanwhile, optimism is fueled by JP Morgan analysts, who note a "recovery in demand momentum" for the Pro models. Evercore adds Apple to its "Tactical Outperform List" and remains optimistic for the December quarter. The analysts emphasize that market sentiment towards Apple has recently become more pessimistic, yet strong demand for upgrades is expected in the United States, which could offset concerns about the Chinese market. Additionally, China presents headwinds due to the main competitor Huawei. Nonetheless, demand for Pro models remains high, as reflected in the sales of the iPhone 15 Pro and Pro Max in the second quarter of 2024. Apple's wearables and services segments are also anticipating positive developments, with new products like the Apple Watch and AirPods Max.