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

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

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

1. You’ll still need to wait forever to get an iPhone twelve Pro
It’s been above 2 months since Apple introduced the iPhone twelve Pro, and customers purchasing today still have to wait up to three months for shipping and delivery. Which might as well be forever in the era of next day delivery. By comparison, it took just six days for iPhone 11 interest to achieve equilibrium with supply last year, as reported by Credit Suisse analyst Matthew Cabral. The Apple iPhone 12 Pro noticed from an angle.

The standard iPhone 12 as well as the iPhone 12 Mini are much more being sold both in-store and for immediate delivery. That suggests Apple better see a better 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 things suggesting very strong iPhone sales for the quarter, the taller ASP should lead to iPhone revenue greatly outperforming. And considering iPhone accounts for 50 % of revenue, and typically closer to 60 % in the very first quarter, which need to have a significant influence on its revenue versus expectations.

2. Suppliers are publishing big profits 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 (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 12 Pro. The business is the premium supplier of the high-end products.

Meanwhile, Dialog Semiconductor raised the fourth-quarter revenue perspective 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 reason. Considering Apple accounts for the vast majority of the revenue of its, it’s a really great 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 actually our’ bull case scenario'” in a note to investors.

3. New files in the App Store
Apple reported record gross sales for the App Store of its in its annual 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 twenty seven % from year that is last, plus an acceleration from the 16 % growth in sales of the same period in 2019. The company also recorded $540 million in sales on New Year’s Day, up nearly forty % from previous year. Those numbers suggest a good deal of new iPhones under the tree this season.

In addition, it bodes well for Apple’s all-important services segment — its fastest-growing and highest-margin enterprise. The App Store is actually Apple’s most lucrative service, generating yucky profits well above the subscription services of its as Apple Music or perhaps Apple TV. So outperformance on that front must cause better-than-expected earnings.

Morgan Stanley analyst Katy Huberty notes, “If we maintain the rest of our December quarter Apple Services forecast unchanged, the most recent App Store data would imply December quarter Services revenue of $14.84 [billion]… 40 [basis points] in advance of consensus at $14.78 [billion].” It’s very likely, however, that more potent App Store sales make the perfect indication of stronger sales of Apple’s other services.

It looks like the iPhone supercycle could be a reality this season based on the early results we have noticed as well as other hints at demand that is strong . And that’ll bolster Apple’s whole company — as well as the FAANG stock — when it reports the full results of its on Jan. twenty seven.