Apple’s most in-demand iPhones this year, the premium Pro models, will fall short of earlier shipment estimates by 6 million units, due to the disruption at their main assembly hub in China, Morgan Stanley said in a note to clients this week.
Assemblers of the iPhone are now expected to ship 79 million units in the current quarter, analysts led by Sharon Shih wrote this week. The shortfall from the previous 85 million handsets estimate is entirely down to the iPhone 14 Pro and 14 Pro Max, assembled at the Zhengzhou facility in central China, hit by a surprise weeklong lockdown after a Covid outbreak. Apple acknowledged delays in deliveries and a likely lower shipment of devices due to the disruption.
“The wait time for 14 Pro/Pro Max has extended to four to five weeks as of late versus two to four weeks a month ago, implying demand stays healthy, even with supply gap,” Shih and her colleagues wrote.
The Morgan Stanley analysts consider the impact on assembly to be manageable and now forecast higher-than-usual output in the first few months of 2023 to make up for unfilled demand.
MacDailyNews Take: These iPhone 14 Pro sales are merely deferred, not lost. Some may shift down to iPhone 14 and iPhone 14 Plus, but most buyers will simply wait for supply to catch up amidst strong demand.
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