As of 12:42 p.m. ET today, shares of Apple climbed, adding as much as 2.4% and making the stock go up by 1.3%
The reason behind the up on a mixed day for the market is the news that the demand for iPhones is holding up better than investors had expected, which could mean an additional upside in the stock.
After initiating supply chain checks in China, Wedbush analyst Daniel Ives concluded there have been “steady with slight improvements, despite the zero-COVID-driven demand issues.”
The Chinese government has acted swiftly, initiating lockdowns for some of the country’s largest cities to curb the spread of the new wave of the pandemic, which has caused intermittent delays in the manufacturing sector.
Apple has not been immune as it temporarily shuttered the iPhone factories earlier this year.
However, Ives’ checks suggest iPhone sales could surprise the upside. “We believe iPhone demand is holding up slightly better than expected,” the analyst wrote, “despite the various supply issues that have plagued Apple and the rest of the tech sector.”
Let’s not forget that we are in the middle of inflation and that any economic downturn can affect the tech company. With iPhone prices being through the roof, consumers will likely not upgrade their device, which would directly harm Apple’s revenue.