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

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

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

1. You still have to wait around indefinitely to get an iPhone twelve Pro
It has been over two weeks since Apple introduced the iPhone 12 Pro, and customers buying nowadays still need to hold back a maximum of three days for shipping and delivery. That may as well be for years in the age of next day shipping. By comparison, it took just six months for iPhone eleven interest to attain equilibrium with supply last year, according to Credit Suisse analyst Matthew Cabral. The Apple iPhone twelve Pro noticed from an angle.

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

Apple is reportedly ramping up production for the iPhone twelve in the first half of 2021. Coupled with other factors suggesting very strong iPhone sales for the quarter, the higher ASP should lead to iPhone revenue significantly outperforming. And considering iPhone accounts for 50 % of revenue, and generally closer to 60 % in the first quarter, that must have a significant influence on the revenue of its versus expectations.

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

Foxconn’s outperformance is also in line with the greater-than-expected need for the iPhone twelve Pro. The business 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 as well as $441 million, Barron’s reports. The chipmaker cited increased need for 5G chips as the main reason. Considering Apple accounts for the majority of the revenue of its, it is a pretty good bet those chips are actually going in iPhone 12s.

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

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

Furthermore, it bodes well for Apple’s all important services segment — its highest-margin and fastest-growing business. The App Store is actually Apple’s most profitable service, generating yucky profits well above the membership services of its like Apple Music or maybe Apple TV. So outperformance on that front must 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 latest 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 very likely, however, that stronger App Store sales are a great indication of stronger sales of Apple’s other services.

It looks as the iPhone supercycle could be a reality this year depending on the first results we’ve seen as well as other hints at demand which is intense. And that’ll bolster Apple’s whole company — as well as the FAANG stock — if this reports the full results of its on Jan. 27.

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