The U.S. wireless carriers like AT&T (NYSE:T) and Verizon (NYSE:VZ) are Apple’s (NASDAQ:AAPL) key partners driving the sales of its iPhones by making them more affordable through promotional offers. Now, as Apple unveiled four new models of iPhone 15, these wireless carriers are expected to spur demand and drive sales via deep discounts. Let’s delve deeper.
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iPhone 15 Needs a Push from Wireless Carriers
Apple’s product sales are under pressure due to the challenging macro environment and tough year-over-year comparisons. Its iPhone revenue reached $39.7 billion in the June quarter, down 2% year-over-year. Mac sales fell 7%, while iPad revenue dropped 20% during the same period.
While the macro environment poses challenges, Barton Crockett of Rosenblatt Securities believes that the features of the new iPhone 15 are “more incremental than revolutionary.” In a note to investors dated September 13, the analyst said he doesn’t expect the iPhone 15 to significantly accelerate demand.
Owing to these challenges, wireless carriers could play a significant role in driving iPhone sales. Notably, a Wall Street Journal report highlighted that they sold more phones in the June quarter than Apple sold directly. Per the report, the Consumer Intelligence Research Partners survey showed that wireless carriers accounted for four out of five U.S. iPhone sales during the June quarter, emerging as the key sales channel for the company.
Given the significance of wireless carriers for iPhone sales, Goldman Sachs analyst Mike Ng said that the “US carrier launch promotions for the iPhone 15 should support demand with instant and bill credits potentially covering the purchase price of the phone.” The analyst reiterated a Buy on AAPL stock on September 12.
It remains to be seen how the demand unfolds for iPhone 15. Meanwhile, let’s look at the Street’s projection for Apple stock.
What Are Analysts Saying About Apple Stock?
Wall Street analysts are cautiously optimistic about Apple stock due to the short-term headwinds. It has received 22 Buy and eight Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $207.46 implies 18.05% upside potential from current levels.
