Even if Apple. AAPL iPhone sales are likely to beat forecasts for the next two quarters combined, according to analysts grappling with production issues stemming from the situation in China.
Mixed signals for the December quarter: Lead Time – The time from ordering the iPhone 14 Pro/Pro Max model to actual product delivery was 4.3 weeks as of the week of December 9th. Gene Munster Co-founder of Loup Funds said: This, he noted, compared to his 0.9 weeks for his iPhone 13 Pro model in the week of December 12th last year.
He added that the three-fold increase in lead times over the previous year was due to a combination of tight supply due to China’s COVID-19 restrictions and strong demand for the Pro models.
Apple’s chip supplier Taiwan Semiconductor Manufacturing Company Limited TSMIt builds the technology giant’s A16 chip used in the iPhone 14 Pro model. That’s unchanged from 48% growth in the September quarter when Apple reported iPhone revenue growth of 10% year-over-year, he said. pointed out.
That doesn’t mean Apple’s iPhone revenue growth will be 10% in the December quarter, as there is a lag between TSMC’s sale to Apple and the time the chip is used in the iPhone and the product goes on sale. said Munster.
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Potential upside in the coming months: Münster noted two negative data points for iPhone demand in the December quarter. The first is the company’s pre-announcement showing the sale of the soft iPhone Pro model, and the second is soft, with longer than usual lead times later in the quarter.
TSMC’s strong October and November sales are measurably better, but it suggests a December quarter could be upbeat, albeit with a lag, analysts said. said.
“When these three forces are added together, it’s unclear whether the iPhone will outperform December’s estimates,” said Munster.
Analysts expect iPhone sales to pick up in the coming months, aside from the iPhone assembly time and estimates for December and March.
Apple ended Friday’s session down 0.34% at $142.16, according to Benzinga Pro data.
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