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Even as investment firm UBS reported that it had observed evidence of improving wait times for the iPhone 14 Pro and iPhone 14 Pro Max in 30 countries, Apple shares dropped nearly 2% to $143.86 in midday trading on Tuesday, indicating that the supply chain challenges the tech giant faced are beginning to ease up.
Apple (AAPL) analyst David Vogt noted that wait times in the U.S. for both of the high-end iPhone 14 models have decreased to approximately 25 days, down from 38 days two weeks ago. Vogt rates Apple (AAPL) as a buy and has a $180 price target. Wait times in China have decreased, albeit less dramatically, to 36 days from 39 days the previous week and two weeks ago.
It would be conceivable for US customers to receive an iPhone 14 Pro or iPhone 14 Pro Max by Christmas, according to Vogt, if the trend keeps improving at the current rate.
Although the trend is a welcome break, Vogt stated in a note to clients that he believes the market will likely compare the December and March quarters overall to last year in order to assess underlying demand.
Early in November, Apple (AAPL) issued a warning that supply chain problems in China brought on by the nation’s stringent COVID-19 regulations would lead to lower shipments of the iPhone 14 Pro and Pro Max than initially anticipated.
According to the analyst, only a “limited” number of customers are willing to leave the Apple (AAPL) ecosystem, and iPhone demand has been “largely durable.” He currently projects that 144 million iPhones will be sold over the next two quarters, which would be flat and in line with last year’s performance.
In an effort to continue diversifying away from China, it was reported on Monday that Apple (AAPL) was considering moving some of the production of its well-known iPad tablet to India.