Daniel Ives dismisses Bloomberg ‘News’ FUD, reiterates $220 Apple price target

Apple 3.0’s Philip Elmer-DeWitt on Wednesday reports on a Wedbush note to clients from managing director Daniel Ives regarding Bloomberg “News” latest FUD hit on Apple (see: As we predicted, here comes the ‘Apple has cut iPhone 14 orders’ FUD) in which Ives reiterates that iPhone 14 Pro demand remains robust making for a significantly stronger mix for iPhone 14 than for iPhone 13 which “means much higher ASPs and a clear tailwind for Apple into FY23 at this pace.”
Apple’s flagship iPhone 14 Pro Max
In his note to clients, Ives maintained his “Outperform” rating and $220 price target on Apple.
Philip Elmer-DeWitt for Apple 3.0:

From a note to Wedbush clients that landed on my desktop Wednesday:
Last night Bloomberg reported that Apple has decided to maintain production for iPhone 14 and “not increase as expected” given softer consumer demand… Our view is the headline of “not increasing production” (~6 million units) overshadows the underlying story for iPhone 14 Pro demand that is currently playing out in the field.
iPhone Pro demand remains robust based on all data points we see across the US and China and is tilting towards a 85%-90% mix for iPhone 14 vs. ~65% with iPhone 13. This means much higher ASPs and a clear tailwind for Apple into FY23 at this pace…
As we have discussed initial iPhone 14 units was roughly 90 million and is in line with iPhone 13 and that remains firm/unchanged. However the mix is heavily shifted towards Pro while the base model iPhone sales have clearly been underwhelming and softer than Apple expected.
Our positive thesis on Apple remains unchanged and we are not wavering in our view the iPhone 14 Pro demand is robust and this will enable Apple to power through near-term macro headwinds much better than feared by the Street.

Read more of Ives’ note at Apple 3.0 here.
MacDailyNews Take: Same. More on our take here.
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