Apple (NASDAQ:AAPL) headed into its fiscal 2021 very first quarter with expectations that are high from investors. The highlight of Apple’s quarter was the launch of the iPhone 12, the tech titan’s first 5G smartphone. Investors anticipated excellent sales as wireless carriers force their 5G networks and build excitement around the brand new iPhones. All signs indicate Apple’s delivered on those expectations.

Here are three of the most noteworthy advancements bolstering Apple’s stock heading into its earnings report later this month.

1. You will still have to wait forever to get an iPhone twelve Pro
It has been over two months since Apple released the iPhone 12 Pro, and clients purchasing nowadays still have to wait as many as three months for delivery. That might as well be forever in the era of next day delivery. By comparison, it took only six days for iPhone eleven need to attain equilibrium with supply last year, according to Credit Suisse analyst Matthew Cabral. The Apple iPhone twelve Pro seen from an angle.

The regular iPhone twelve and also the iPhone twelve Mini are a lot more found both in store and for instant delivery. Which implies Apple must see an improved average selling price (ASP) for the iPhone when it announces the first-quarter benefits of its.

Apple is reportedly ramping up production for the iPhone twelve in the earliest half of 2021. Coupled with other things suggesting very strong iPhone sales for the quarter, the taller ASP should lead to iPhone revenue greatly outperforming. And viewing iPhone accounts for fifty % of revenue, and usually closer to sixty % in the very first quarter, which need to have a significant impact on its revenue versus expectations.

2. Suppliers are posting big earnings numbers
Apple’s biggest iPhone assembler, Foxconn, announced record revenue for the month of December. The Taiwanese company, which trades as Hon Hai Precision, reported sales of 713.8 billion New Taiwan dollars (aproximatelly $25.5 billion) for December, and quarterly revenue of NT$2 trillion. The beat expectations of NT$1.8 trillion, based on Bloomberg.

Foxconn’s outperformance is additionally in line with the greater-than-expected need for the iPhone twelve Pro. The business enterprise is the premium supplier of the high end products.

Meanwhile, Dialog Semiconductor raised its fourth quarter revenue outlook from a range of $380 million to $430 million to between $436 million as well as $441 million, Barron’s reports. The chipmaker cited increased need for 5G chips as the primary reason. Considering Apple accounts for the vast majority of its revenue, it is a really good bet those chips are going in iPhone 12s.

And in late December, Wedbush analyst Daniel Ives said his Asia source chain checks “have now exceeded actually our’ bull case scenario'” in a note to investors.

3. New records in the App Store
Apple reported record gross sales for its App Store in its annual brand new year update. In the week in between Christmas Eve along with New Year’s Eve, iOS computer users spent $1.8 billion in the App Store. That’s up twenty seven % from year which is last, as well as an acceleration from the sixteen % growth of sales of the exact same period of 2019. The company also recorded $540 million in sales on New Year’s Day, up about forty % from year which is previous. Those numbers suggest a lot of new iPhones under the tree this season.

In addition, it bodes well for Apple’s all important services segment — its fastest-growing and highest-margin business. The App Store is Apple’s most profitable service, generating gross profits well above its subscription services like Apple Music or perhaps Apple TV. So outperformance on that front should lead to better-than-expected earnings.

Morgan Stanley analyst Katy Huberty notes, “If we keep the majority of our December quarter Apple Services forecast unchanged, the most recent App Store data would imply December quarter Services revenue of $14.84 [billion]… 40 [basis points] ahead of consensus at $14.78 [billion].” It is quite possible, nonetheless, that stronger App Store sales are a good indication of more potent sales of Apple’s other services.

It looks like the iPhone supercycle could be a reality this year depending on the first results we have noticed and other hints at demand that is strong . And that’ll bolster Apple’s whole business — and the FAANG stock — if this reports the complete results of its on Jan. 27.