Apple iPhone Supply ‘Continues to Improve Slowly’

Apple (NASDAQ: AAPL) shares have been impacted by supply chain issues for its iPhone 14 model in recent months, but JPMorgan analyst Samik Chatterjee said in a note that the situation is improving.

Apple’s stock price is down 25% this year and over 11% in the last three months as headwinds have taken hold, resulting in near-term concerns.

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However, Chatterjee was quoted by TheFly as telling investors that the firm’s analysis shows that in week 16 of its Apple product availability tracker, iPhone supply “continues to improve slowly.”

Lead times are said to be moderating further in China, while he states that the majority of models are now available to pick up in-store across all countries, including China, for the first time since the product launch.

Meanwhile, the analyst, who has an Overweight rating on Apple shares, writes that lead times for Pro models are now tracking in line with lead times seen before the COVID outbreak in Zhengzhou, China, “suggesting that supply is improving and inching slowly towards parity with demand.” 

In addition, in the US, lead times for the iPhone 14 and iPhone 14 Plus rose up to five days each from one day earlier, which is in line with the timing for the iPhone 13 and 13 mini last year. 

Despite the JPMorgan analyst’s positive stance, the Financial Times wrote over the weekend that growing Covid cases in China are a growing risk for its supply chain, and in a separate article last week, it said Apple is to start making MacBooks in Vietnam by mid-2023. Even so, China has continued to ease restrictions, with the news that it will scrap quarantine for travellers from January 8.