There's a silver lining in Apple's iPhone 14 warning: analyst - Yahoo Finance

If determination is immoderate tiny affirmative from Apple's caller iPhone accumulation warning, it's that recession fears haven't stopped radical from wanting $1,000 positive caller models and waiting weeks to get them.

"Supply concatenation challenges person been predominant the past mates of years, and determination is constricted grounds that delays successful shipping devices person had immoderate interaction connected wide volumes for a merchandise rhythm (example: iPhone 12 oregon iPhone 13) implicit a multi-quarter period." JP Morgan expert Samik Chatterjee wrote successful a enactment to clients.

Chatterjee explained that "within the hardware portfolio, we spot the request destructions from proviso pushouts the slightest for the iPhone, arsenic consumers are consenting to hold for delivery; and would expect the delayed shipments to propulsion retired into F2Q23 (March-end) oregon aboriginal quarters."

Apple amazed markets precocious Sunday with an announcement that COVID restrictions successful Zhengzhou, China are impacting operations astatine iPhone 14 Pro and iPhone 14 Pro Max accumulation sites.

"We proceed to spot beardown request for iPhone 14 Pro and iPhone 14 Pro Max models," the connection said. "However, we present expect little iPhone 14 Pro and iPhone 14 Pro Max shipments than we antecedently anticipated."

The tech elephantine added that it's moving intimately with suppliers to instrumentality to mean accumulation levels.

Apple banal fell 1% successful pre-market trading connected Monday. The company's ticker leafage was among the top 10 visited connected Yahoo Finance.

JPM's Chatterjee stayed with an Outperform standing connected Apple with a $200 terms people but warned determination is heightened hazard to Wall Street expert estimates for the existent quarter. He added the quality is improbable to suggest the latest suite of iPhones volition under-perform expectations into 2023.

"We spot upside successful respective aspects of the concern arsenic good arsenic financials that stay underappreciated by investors, namely the translation of the institution to Services, maturation successful the installed base, exertion leadership, and optionality astir superior deployment — each of which unneurotic pb america to expect double-digit net maturation and a humble re-rating for the shares," Chatterjee wrote.

Brian Sozzi is an editor-at-large and anchor astatine Yahoo Finance. Follow Sozzi connected Twitter @BrianSozzi and connected LinkedIn.

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