Apple seeing 'strong' iPhone demand into Black Friday, but supply worries persist: Wedbush - Seeking Alpha

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Apple (NASDAQ:AAPL) has continued to spot beardown request for the iPhone 14 Pro and iPhone 14 Pro Max units and with the all-important Black Friday buying play close astir the corner, Wedbush Securities noted that the lone thing holding backmost the tech elephantine volition beryllium supply.

"The zero Covid China shutdowns successful Foxconn person been a large gut punch to Apple this 4th and we judge person taken astir 5% of iPhone 14 units retired of the proviso concatenation and frankincense putting Cupertino successful a 'major shortage' heading into the adjacent month," expert Dan Ives wrote successful a enactment to clients.

Ives added that Apple (AAPL) is apt to merchantability 8M iPhones this weekend, down from 10M past year, "with the spread being mostly proviso driven."

Delving deeper, Ives noted that contempt the economical climate, determination is "strong" iPhone upgrade enactment from AT&T (T) and Verizon (VZ) and successful store enactment has been "solid" for Apple (AAPL) successful astir stores arsenic good arsenic its online channels. Nonetheless, inventory is an issue, with iPhone 14 retention options and colors seen arsenic "limited" and lone apt to get worse.

"We judge by aboriginal December it volition beryllium progressively hard to get your hands connected an iPhone 14 Pro with galore transportation times apt pushed done to aboriginal January," Ives added.

Earlier this month, Apple (AAPL) warned that COVID-19 restrictions successful the world's astir populated state would effect successful little iPhone 14 shipments than antecedently expected.

We "now expect little iPhone 14 Pro and iPhone 14 Pro Max shipments than we antecedently anticipated and customers volition acquisition longer hold times to person their caller products," the institution said.

"COVID-19 restrictions person temporarily impacted the superior iPhone 14 Pro and iPhone 14 Pro Max assembly installation located successful Zhengzhou, China," Apple continued, adding that the installation was "operating astatine importantly reduced capacity."

Following the Apple (AAPL) statement, respective concern firms, including Morgan Stanley and UBS, tweaked estimates connected the tech giant, but Morgan Stanley said investors had an emerging accidental to "buy the dip."