Wedbush: iPhone factory's COVID issues not a reason to sell Apple stock - AppleInsider

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Despite COVID-related proviso concatenation issues and Apple informing of little shipments of the iPhone 14 Pro, Wedbush insists that investors should support their holding successful Apple.

Since mid-October, Apple has had to woody with problems astatine a Foxconn mill successful Zhengzhou, China, caused by a COVID outbreak and strict government restrictions impacting its operation. Apple besides issued a rare update connected Sunday, acknowledging the little accumulation of the iPhone 14 Pro models.

On Monday, Wedbush analysts Daniel Ives and John Katsingris offered their ain blistery instrumentality connected the affair, informing wavering investors against selling their shares successful the look of impermanent adversity.

Noting the "chaos" seen successful China surrounding the factory, including workers leaving implicit conditions and restrictions, the Wedbush enactment seen by AppleInsider states that the concern "is an implicit gut punch for Apple successful its astir important vacation quarter."

While request remains precocious and steadfast going into the vacation season, Wedbush estimates the proviso issues could negatively interaction iPhone income by conscionable 3%. "If Zhengzhou remains astatine little capableness the adjacent fewer weeks, this would origin wide iPhone Pro shortages into the all-important Christmas clip play particularly successful the U.S.," the enactment explains.

This isn't "the quality immoderate bull wants to perceive from Apple," but Wedbush adds that portion it's a proviso contented and related to China's zero COVID argumentation which is "a precise frustrating situation," it's not a demand-driven problem. There is beardown demand, it's conscionable that events person led to Apple not being capable to support up arsenic overmuch arsenic it wants to.

Referring to the concern arsenic an "ongoing albatross for Apple," Wedbush is inactive offering a "positive thesis connected the request communicative during this economical acheronian storm." Indeed, the analysts accidental they "would beryllium buyers connected immoderate knee-jerk weakness this greeting arsenic the Street digests this news."

Concluding the note, Wedbush continues to support its "Outperform" standing for Apple, and continues its 12-month terms people of $200.