Apple indicated that demand for iPhone 7 and 7 Plus has significantly outpaced supply, particularly on iPhone 7 Plus. This is in-line with our supply chain view that iPhone 7 demand could be better than feared. We saw upward revision on 5.5" iPhone 7 Plus and expect 70-72mn iPhone build in 4Q. On the flip side, despite management expecting iPhone ASP returning to the same level.
iPhone units 45.5m, iPhone ASPs $619 (down 8% yoy), iPad units of 9.3m , Mac units of 4.9m (vs. consensus 5.1m & JPMe 5.0m). ASP increased 4% Q/Q thanks to new product launch but still down 8% Y/Y.
MacBook channel inventory was below 4-5 week target & iPad channel inventory was below 5-7 week target. Rev from other products (e.g. Apple TV, Apple Watch, & other peripherals) declined 22% Y/Y ? Apple again did not share any details on Apple Watch sales volume
