Summary: Shares of Apple (AAPL) have been under pressure since late July 2022. Research reports showed disappointing smartphone shipments in the second quarter of this year, and Micron issued very pessimistic memory sales guidance. But in this post, I'll explain why iPhone14 sales have exceeded expectations.

Apple's launch event is earlier than usual this year, with the "Far Out" event scheduled for Sept. 7 at the Steve Jobs Theater in Cupertino, California. Every iPhone event since the iPhone 4S in 2011 has come later than this year's iPhone 14. This shows that Apple's supply chain is manageable and can deliver goods on time. Several iPhone models came out later than planned in previous years, mainly due to supply chain issues. Smartphone shipments may be down, but Apple sales are up. This is a positive factor. Much negative news surrounding the consumer electronics market is not well thought out.

Smartphone shipments are down year over year, but Apple's are up. According to Counterpoint Research, Apple's share of the $1,000 and above smartphone market grew 147% yearly to 46% of the overall market. Globally, smartphone shipments fell 7% year on year to 291 million units in the second quarter of 2022. But Apple shipped 48 million iPhones worldwide in the second quarter of 2022, up 3 percent yearly and accounting for 16 percent of the global market share. It was Apple's highest second-quarter market share in the past decade while leading Chinese brands struggled both at home and abroad. Apple said it had a good quarter, with sales of the iPhone 13 series continuing to grow in the US, China, and other key markets.

Apple's announcement's early timing is a positive factor and now represents a buying opportunity for investors. Apple reported revenue of $63.4 billion in the third quarter, and the iPhone set a quarterly revenue record in June. On the third-quarter earnings call, according to the company's CFO, "iPhone revenue grew 3% year-over-year to a record $40.7 billion in June, despite foreign exchange headwinds, as consumer response to our iPhone 13 line continued to be strong. We set a June quarter record in both developed and emerging markets. Due to sales performance and unmatched customer loyalty, the iPhone's active installed base reached an all-time high in all geographies."