Apple (AAPL) iPhone 13 Lead Times Easing as Supply Chain Improves - UBS

December 1, 2021 6:45 AM EST
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UBS analyst David Vogt has noted that wait times in the US and China for Apple’s (NASDAQ: AAPL) iPhone 13 Pro and Max have continued to ease, a signal that supply chain pressures are easing as well.

Although wait times are still elevated in key markets (US, China, Japan, and Europe), the analyst sees “modest improvement in availability on a week-to-week basis.” At the moment, iPhone 13 Pro/Max wait times are roughly 2 weeks.

“We believe the decline in wait times coincides with improvement in the supply chain as some of the earlier reported headwinds appear to have been resolved with several suppliers noting December production should be better than November which was better than October,” Vogt wrote in a client note.

UBS continues to project 80 million units for December and 230 million units for FY22, both below the consensus of 82 million/235 million.

“In China, the wait time for both the 13 Pro and Max sits at 18 days as wait times for the 13 Pro is now in line with last year's model, while wait times for the 13 Pro Max have yet to drop to the degree we saw last year despite the high price point suggesting stronger demand. As noted earlier, we believe the supply constraints in China caused by the bottlenecks in Southeast Asia continue to ease based on our checks.

The analyst rates Apple with a Buy rating and a $175.00 per share price target.

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