AAPL Price Fueled by Strong Preorder Demand for New iPhones

Apple's stock price has been steadily increasing since its recovery from $310-$312 in September, and it is currently trading at around $334.8. The main driver of this growth has been the start of sales for the iPhone 18 Pro and Pro Max.

The first signs of demand look generally positive, with preorder wait times of two to four weeks, roughly in line with last year's numbers but with higher production volumes. However, JPMorgan estimates that preorder momentum is around the same level as the iPhone 17 cycle, so it's not yet clear if demand is accelerating.

Apple reported strong results for its third fiscal quarter, with revenue rising 16% year over year to $109.4 billion and gross margin coming in at 50.1%. However, around 2 percentage points of gross margin and $0.11 of EPS came from tariff refunds, so part of the improvement was one-off in nature.

The market will be watching the new product cycle's ability to maintain momentum after the initial launch demand. The higher price of the Pro models could support margins, but it also increases sensitivity to consumer demand.