TLDR:
- Apple stock closed near its all-time high at $233 on September 30, 2024
- iPhone 16 lead times are stabilizing, potentially indicating strong demand
- Apple Intelligence, the company’s AI software, is set to roll out in October
- Analysts are generally bullish on Apple stock, with most rating it Buy or Overweight
- Apple’s market cap is currently $3.5 trillion, making it the world’s most valuable public company
Apple’s stock price is nearing its all-time high, closing at $233 on September 30, 2024, just shy of its record $234.82 set on July 16. This recent surge comes as analysts report stabilizing lead times for the newly released iPhone 16 models, potentially signaling strong consumer demand.
The tech giant’s shares rose 2.3% on the last day of the quarter, bringing its year-to-date increase to 21%. This performance aligns closely with the Nasdaq Composite and slightly outpaces the S&P 500’s 20% rise over the same period.
Morgan Stanley and J.P. Morgan analysts have noted that lead times for iPhone 16 models, particularly the higher-end Pro versions, are stabilizing or even extending in some cases.
This development is seen as a positive indicator, as longer lead times generally suggest stronger demand. Morgan Stanley reported that the trajectory of iPhone 16 Pro and Pro Max lead times now more closely resembles that of the better-performing iPhone 12 and 13 models, rather than the 14 and 15 series.
J.P. Morgan’s Apple Product Availability Tracker showed improvement in delivery lead times, especially for the base iPhone 16 models. In the third week since orders opened, delivery-at-home timing across regions averaged 10 days for the iPhone 16 and 5 days for the iPhone 16 Plus, down from 17 days and 16 days respectively in the second week. The Pro and Pro Max models maintained steady lead times of 23 and 29 days.
While these figures are encouraging, analysts caution that it may be too early to draw definitive conclusions about the iPhone 16’s performance. The initial slower momentum for Pro models could be attributed to higher-end consumers waiting for the release of Apple Intelligence, the company’s new AI software set to launch in October with iOS 18.1.
Apple Intelligence, a play on the term “artificial intelligence,” will offer features such as email summarization, original image creation, and customized movie production. This upcoming release may be contributing to the sustained interest in Apple’s latest offerings.
Wall Street remains largely optimistic about Apple’s prospects. Of the 48 analysts tracked by FactSet, 32 rate the stock as either Buy or Overweight. The average 12-month price target stands at $248, representing a 6.7% upside from current levels.
Apple continues to hold its position as the world’s most valuable publicly traded company, with a market capitalization of $3.5 trillion.
The company’s stock has shown resilience, marking its fifth consecutive month of gains – the longest such streak since July 2023.
