New Apple iPhones and Apple Watches are off to impressive start: JP Morgan

September historically isn’t a good month for the broader stock market, but it could be a good month for arguably its most important stock: Apple.

Demand for Apple’s latest suite of iPhones and the pricey new $800 Apple Watch Ultra appear to look strong, according to various analyst.

Apple launched the iPhone 14 Series on Sept. 7. It was available for preorder on Sept. 9, with delivery-at-home/in-store pick-up starting on Sept 16. The new Airpods Pro and Apple Watch Ultra are currently available for pre-order and begin rolling out on Sept. 23.

Apple stock is up about 2% since revealing the new products.

Here’s what JP Morgan analyst Samik Chatterjee, who has an Outperform rating on Apple’s stock and a $200 price target, wrote about the launch:

On overall demand picture for Apple’s latest product suite:

“iPhone demand indications are strong following the launch, and while similar to last year the mix continues to be more favorable towards Pro models, lead times for the two Pro models are already more extended relative to last year. Delivery lead times have already reached extended lengths one day after launch vs. extended lead times one week post-launch for the iPhone 13. Amongst the remaining products, lead-time based demand indication for the Apple Watch Ultra is quite strong as well.”

On iPhone-specific demand in the US and China:

“In the US, Week 1 delivery timing for the 14 and 14 Plus tracks to the first available dates (Sept. 16 and Oct. 7), which is consistent with both the 13 mini and 13 tracking to the first available dates, whereas the Pro and Pro Max lead times have extended lead times of 35 and 42 days, respectively. Relative to in-store, lead times track to the first available dates, albeit with limited SKUs available for the 14 Pro and 14 Pro Max. Recall, the US accounts for ~35% of iPhone shipments.”

And in China:

“In China, Week 1 delivery timing for the 14 and 14 Plus tracks to the first available dates (Sept. 16 and Oct. 7), which is less favorable relative to demand last year for the 13 and 13 mini last year, which had lead times of 15-18 days. However, 14 Pro and 14 Pro Max lead times are significantly above last year’s lead times at 50-57 days (vs. peak of 45 days) and above other regions, suggesting robust demand even in a weaker macro. Relative to in-store, the 14 and 14 Plus lead times track to the first available dates, while both Pro models are unavailable. Recall, China accounts for ~15% of iPhone shipments.”

As for Apple’s new wearables:

“Globally, Watch Series 8 and Watch Ultra lead times tracked at 28 and 34 days, respectively, while Watch SE was less popular at 8 days, suggesting that there is strong consumer interest in the Watch Ultra. In all but one region, AirPods Pro 2 lead times tracked to the first available date (Sept. 23).”