Wedbush Analyst Provides Outlook On Apple Stock Given Strong Early Demand For iPhones

Apple Inc.'s (NASDAQ: AAPL) updated product line featuring new iPhones and iPads are launching in stores Friday and early demand looks strong, according to Wedbush analyst Dan Ives. 

Numbers from the Asia supply chain indicate iPhone 13 demand is up 12% to 13% over the iPhone 12, Ives said Friday on CNBC's "Squawk Box."

Those numbers are significant in terms of Asia, but preorder activity is flashing even more bullish signals, the Wedbush analyst said. 

Overall preorder activity is up anywhere from 20% on the low end to 30% in areas like China, Ives said, adding that those numbers are outpacing estimates. 

"Coming out of the gates, this looks robust — continues to be an underestimated upgrade cycle by the Street."

Ives told CNBC that he thinks the current upgrade cycle is just the start of an upward trend that will drive Apple stock to a $3 trillion market cap in 2022.

Apple is his top FAANG name, Ives noted. 

The Wedbush analyst has an Outperform rating on Apple and a price target of $185.

See Also: Apple Threatens Facebook With Ban Over Instagram Human Trafficking Ads: Report

AAPL Price Action: Apple has traded as high as $157.26 and as low as $105 over a 52-week period.

The stock was down 0.78% at $145.69 at time of publication Friday.

Photo: iPhone 13, Courtesy of Apple.