Apple (NASDAQ:AAPL) has continued to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max units, and with the important Black Friday shopping weekend approaching, Wedbush Securities notes that the only thing Holding back the tech giant will be the supply.
“The Foxconn shutdown due to Covid-19 in China has been a major blow to Apple this quarter, and we believe has taken around 5% of iPhone 14 units off the supply chain and thus left Cupertino in the water.” ‘severe shortage’ next month,” wrote analyst Dan Ives in a note to clients.
Ives added that Apple (AAPL) is likely to sell 8 million iPhone units this weekend, down from 10 million units last year, “with a gap largely driven by supply.”
Digging deeper, Ives noted that despite the economic situation, there was “strong” iPhone upgrade activity from AT&T (t) and Verizon (VZ) and store operations were “solid” for Apple (AAPL) at most of its stores as well as its online channels. However, inventory is an issue, with the iPhone 14’s color and storage options deemed “limited” and only likely to get worse.
Ives added: “We believe that by early December it will be increasingly difficult for you to get your hands on an iPhone 14 Pro with more shipping times likely to be pushed to early January.”
“We currently expect iPhone 14 Pro and iPhone 14 Pro Max shipments to be lower than we previously anticipated, and customers will have to wait longer to receive their new products,” the company said. their”.
“The COVID-19 restrictions have temporarily impacted the main iPhone 14 Pro and iPhone 14 Pro Max assembly facility in Zhengzhou, China,” Apple continued, adding that the facility “is working on operating at significantly reduced capacity”.
According to the Apple (AAPL) claims, several investment firms, including Morgan Stanley and UBS, have adjusted estimates of the tech giant, but Morgan Stanley said investors had an emerging opportunity to “buy the bottom”.