[This] is an indicator for hardware sales expectations, Evercore analyst Amit Daryanani wrote in a research note Tuesday.
Purchase commitments are an obligation the company has made to buy a certain number of items from a supplier. Daryanani wrote that “the increase points to strong expectations for hardware sales over the next twelve months.”
He also added that growth in purchase commitments is encouraging at a time when investors are concerned about the iPhone demand outlook. Daryanani rates Apple as Outperform with a $190 price target…
Along with the company’s purchase commitments, Chief Executive Tim Cook said on the most recent earnings call that he believes iPhone sales would have grown “had it not been for the supply shortages.”