Shares of Apple jumped Monday to an all-time high on speculation of strong demand for the iPhone X, which the company began taking preorders for on Friday.
A deluge of orders for the company’s new luxury phone has already pushed shipment times into December, according to analyst reports from both Drexel Hamilton and Nomura.
“We are encouraged that shipping lead times have held steady at 5-6 weeks because these pre-orders can be recognized as shipments in the December quarter,” wrote Drexel Hamilton analyst Brian White on Monday. “Apple is taking the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultra-luxury smartphone market.”
Apple shares were 2.1 percent higher on Monday and posted their first intraday record since Sept. 1.
Apple told CNBC on Friday that “We can see from the initial response, customer demand is off the charts. We’re working hard to get this revolutionary new product into the hands of every customer who wants one, as quickly as possible.”
While the iPhone X is set for release on Nov. 3, Apple allowed customers to preorder phones starting Friday. While swells of preorders usually result in longer shipment times, analysts are finding that demand for the iPhone X is exceptional.
“We observed shipment times for the iPhone X tick up to 5-6 weeks within minutes of Apple opening pre-orders, where they have held over the weekend,” wrote Nomura analyst Jeffrey Kvaal in a note to clients. “This is ahead of the 2-3 weeks during the iPhone 7 Plus launch and the 2-4 weeks during the iPhone 6 and 6s launch.”
It appears preorder demand is so strong that Apple has directed its Taiwanese suppliers to double capacity in anticipation, according to a FactSet translation of a report in China’s Economic Daily News. IPhone assembler and supplier Hon Hai Precision Industry â€“ also known as Foxconn â€“ was up 1.7 percent in local trading.