Apple sold north of 40 million iPhone 13 models over the holiday period in a record number for the company, despite industry-wide chip shortages, according to Wedbush analyst Daniel Ives.

Last year, reports began emerging that demand for ‌iPhone 13‌ models was slowing ahead of the holidays as delivery estimates for ‌‌iPhone 13‌‌ models started to improve.

However in a new note to investors, seen by MacRumors, Ives said demand remained strong for the current iPhone cycle going into 2022, with demand outstripping supply be several million units in the December quarter, a positive sign for Apple as supply chain issues begin to resolve themselves in the first half of this year.

Based on our supply chain checks over the last few weeks, we believe demand is outstripping supply for Apple by roughly 12 million units in the December quarter which now will add to the tailwinds for Cupertino in the March and June quarters as the supply chain issues ease in 1H22.

According to Ives, China has been a major source of strength for Apple over the last 12 months and a key region for ‌iPhone‌ sales, particularly in relation to increased market share due to the "multi-year supercycle" afforded by the iPhone 12 and ‌iPhone 13‌.

According to Ives, roughly 230 million of 975 million ‌iPhone‌ users worldwide haven't upgraded in the last three and a half years, and the analyst believes Apple's continuing smartphone sales will provide highly influential tailwinds as excitement builds for Apple's much-anticipated mixed reality headset, which is expected to be announced in the summer.

Ives says the "linchpin" to Apple's valuation re-rating remains its services business, taking in the likes of Apple Music, iCloud, Apple TV+, and Apple Fitness+, which Wedbush believes is now worth $1.5 trillion. On that basis, Wedbush predicts that despite reports of supply constraints, Apple's chip shortages are a "transitory issue" and "nothing more than a speed bump" on the way to Apple becoming the first $3 trillion market cap company in 2022.

Source: Macrumors