Apple slips as Wedbush checks show 'major' iPhone shortages, as much as 30% below normal - Seeking Alpha

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Apple (NASDAQ:AAPL) shares fell 1.6% successful a holiday-shortened league connected Friday arsenic concern steadfast Wedbush Securities conducted store checks connected Black Friday that showed "major" iPhone shortages crossed the committee arsenic a effect of Chinas's COVID-19 disruptions.

Analyst Dan Ives, who has an outperform standing and a $200 terms people connected Apple (AAPL), noted that iPhone 14 Pro shortages look to person gotten "much worse" implicit the past week, citing debased inventories crossed the board.

"We judge galore Apple Stores present person iPhone 14 Pro shortages based connected model/color/storage of up to 25%-30% beneath mean heading into a emblematic December, which is not a bully motion heading into vacation play for Cupertino," Ives wrote successful a enactment to clients.

He added that hold times for a caller iPhone 14 Pro are present up to 40 days connected Apple's website and is lone apt to turn implicit the coming days going into Christmas.

The expert called China's zero COVID argumentation "an implicit assemblage blow" to the tech giant's proviso chain, portion positing that the caller protests astatine Foxconn's Zhengzhou works were a "black eye" for some Apple and Foxconn.

"The world is that Apple is highly constricted successful their options for vacation play and are astatine the mercy of China's zero Covid argumentation which remains a precise frustrating concern for Apple arsenic good arsenic the Street," 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.

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."