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Apple (NASDAQ:AAPL) headed into its fiscal 2021 first quarter with expectations that are higher from investors

Apple (NASDAQ:AAPL) headed into its fiscal 2021 very first quarter with higher expectations from investors. The highlight of Apple’s quarter was the launch of the iPhone 12, the tech titan’s very first 5G smartphone. Investors anticipated excellent sales as wireless carriers force their 5G networks and build excitement around the new iPhones. All signs suggest Apple’s delivered on those expectations.

Here are 3 of the most noteworthy developments bolstering Apple’s stock heading into its earnings report later this month.

1. You still must wait forever to get an iPhone 12 Pro
It has been more than 2 months since Apple released the iPhone twelve Pro, and customers purchasing nowadays still have to wait up to three months for shipping. Which should be forever in the era of next-day delivery. By comparison, it took only six weeks for iPhone eleven need to reach equilibrium with supply last year, according to Credit Suisse analyst Matthew Cabral. The Apple iPhone 12 Pro noticed from an angle.

The standard iPhone 12 and also the iPhone twelve Mini are a lot more being sold both in store and for instant shipping. Which hints Apple must see a higher average selling price (ASP) for the iPhone when it announces the first quarter results of its.

Apple is reportedly ramping up production for the iPhone twelve in the earliest half of 2021. Coupled with other things suggesting strong iPhone sales for the quarter, the taller ASP should lead to iPhone revenue significantly outperforming. And viewing iPhone accounts for fifty % of revenue, and usually closer to 60 % in the earliest quarter, that must have a significant impact on its revenue versus expectations.

2. Suppliers are publishing huge earnings numbers
Apple’s biggest iPhone assembler, Foxconn, announced record revenue for the month of December. The Taiwanese business, which trades as Hon Hai Precision, reported sales of 713.8 billion New Taiwan dollars (aproximatelly $25.5 billion) for December, and quarterly revenue of NT$2 trillion. That beat expectations of NT$1.8 trillion, according to Bloomberg.

Foxconn’s outperformance is in addition in line with the greater-than-expected demand for the iPhone twelve Pro. The business enterprise is the exclusive supplier of the high end devices.

Meanwhile, Dialog Semiconductor raised the fourth quarter revenue outlook of its from a range of $380 million to $430 million to between $436 million and $441 million, Barron’s reports. The chipmaker cited increased need for 5G chips as the main reason. Considering Apple accounts for the vast majority of the revenue of its, it is a pretty great bet those potato chips are going in iPhone 12s.

And for late December, Wedbush analyst Daniel Ives said his Asia supply chain checks “have today exceeded actually our’ bull case scenario'” in a note to investors.

3. New records in the App Store
Apple reported record gross sales for its App Store in its annual new year update. In the week between Christmas Eve and New Year’s Eve, iOS users spent $1.8 billion in the App Store. That is up 27 % from year which is last, as well as an acceleration from the sixteen % growth in sales in the exact same period of 2019. The company even recorded $540 million in sales on New Year’s Day, up almost forty % from previous year. Those numbers indicate a great deal of new iPhones under the tree this season.

In addition, it bodes very well for Apple’s all important services segment — its fastest-growing and highest-margin business. The App Store is Apple’s most lucrative service, generating gross profits well above the membership services of its as Apple Music or Apple TV. So outperformance on that front should result in better-than-expected earnings.

Morgan Stanley analyst Katy Huberty notes, “If we maintain the remainder of our December quarter Apple Services forecast unchanged, the new App Store data would imply December quarter Services revenue of $14.84 [billion]… forty [basis points] ahead of consensus at $14.78 [billion].” It is most likely, nevertheless, that more potent App Store sales make the perfect indication of more potent sales of Apple’s other services.

It looks as the iPhone supercycle might be a reality this season based on the early results we have noticed as well as other hints at intense demand. And that’ll bolster Apple’s entire business — and the FAANG stock — when it reports the complete results of its on Jan. 27.

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