Recent analyst data signals that iPhone 18 Pro demand might be stronger than Wall Street fears, which is a good sign for Apple as the company bets big on its higher end models.
Apple announced the introduction of the iPhone 18 Pro and Pro Max at its annual smartphone event last week. Preorders for the phone began on Sept. 12, with availability starting this Friday.
Morgan Stanley analyst Erik Woodring wrote in a note on Wednesday that lead times-the total amount of time from when a customer places an order to delivery of that order-for the iPhone 18 Pro and Pro Max are two to four weeks. He says that lead time is flat to slightly longer from the prior year compared with the iPhone 17 models.
However, Woodring adds that lead times reflect the impacts of both iPhone supply and demand, and there seems to be more supply of the iPhone 18 pro than its predecessor, which suggests more product availability.
"Therefore, flattish Y/Y lead times despite materially higher production might actually suggest healthier underlying demand for the iPhone 18 Pro/Pro Max," Woodring wrote.
That's important, especially after other analysts have questioned customer demand for the latest iPhone installment. GF Securities analyst Jeff Pu wrote in a post on X on Tuesday that "pre-order wait times look lukewarm." Apple stock declined 0.5% on Tuesday and was down another 0.1% on Wednesday.
Woodring also recognizes that there are risks that could affect demand for the new iPhone, one being the iPhone Duo, Apple's first foldable smartphone, which is scheduled to launch in October. Consumers that are looking to upgrade to a high end phone might skip the Pro and wait to upgrade to a Duo. There's also pricing risks, as the iPhone Pro is $100 more than its predecessor.
Still, "demand may be tracking better than feared," Woodring wrote. He rates Apple as Overweight with a $360 price target.
This is positive for Apple stock as most of the company's revenue comes from iPhone sales. Strong demand of their most popular product in a difficult environment would not only benefit Apple's financials, but would also prove to investors that the company's brand is strong enough to still capture interest even after raising prices.
Other recent analyst commentary was also signaling there's demand for the new iPhone. According to a smartphone survey published by Citi on Tuesday night, respondents across all regions expect to replace devices faster than in prior cycles, shortening holding periods to 2.1 years to 2.7 years versus 2.9 years to 4.3 years previously.
"This trend may be partly driven by demand for AI-enabled devices, particularly among owners of older iPhones seeking access to Apple Intelligence," Citi wrote.