Apple’s big holiday iPhone selling season is here, but J.P. Morgan analyst Samik Chatterjee thinks there are “potential risks on the horizon” for Apple involving supply chain issues rising from the response to COVID-19.
[Still], the analyst believes the “magnitude of those constraints are moderating at this time, and Apple is well positioned for a strong sales quarter in C4Q/F1Q (strong selling season in the last 45 days of the year).”
The latest iPhone’s production already suffered a “slightly delayed start” due to camera module issues… Then Covid-19 reared its ugly head again, as rising cases and consequent September lockdown measures impacted Sharp’s production facility in Ho Chi Minh City, Vietnam – where camera modules are manufactured.
With the easing of lockdown restrictions on October 1, and the “flexibility to also leverage LG Innotek’s camera facility in Vietnam, or a secondary facility in South Korea,” Chatterjee expects the production will “ramp steadily from hereon.”
MacDailyNews Take: J.P. Morgan’s Chatterjee maintains an “Overweight” (i.e. Buy) rating with a $180 price target on Apple shares.
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