Apple (AAPL) could sell 2 million fewer iPhone 14 units for Black Friday, warns analyst

November 23, 2022 9:04 AM EST
Get Alerts AAPL Hot Sheet
Price: $148.33 +0.20%

Rating Summary:
    46 Buy, 17 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 28 | New: 30
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Wedbush analyst Daniel Ives believes demand for iPhone 14 is “way ahead” of supply with elevated lead times for high-end models like iPhone 14 Pro and Pro Max. Major shortages are developing for the upcoming Black Friday weekend as Apple struggles to increase supply to meet “strong” iPhone demand.

It has been widely reported this morning that major protests erupted at the world’s biggest iPhone factory in the city of Zhengzhou in China, operated by Apple’s major supplier Foxconn. Apple previously warned that it is experiencing major supply issues amid China’s controversial Covid-zero policy.

“Many Apple stores and retailers are low on iPhone 14 inventory across the board as we believe for Black Friday weekend roughly 8 million iPhones will be sold down from 10 million in the year ago period with the gap being mostly supply driven,” Ives wrote in a client note.

Recent checks showed that is getting more and more difficult to “get your hands on an iPhone 14 Pro with many delivery times likely pushed through to early January.”

“While the Zhengzhou and Foxconn situation in China remains an ongoing albatross for Apple, our positive thesis on the demand story during this economic dark storm for Apple remains unchanged and would be buyers of the name with the demand thesis holding firm in this economic storm,” Ives added.

Wedbush has an Outperform rating and a $200 per share price target on Apple stock.

By Senad Karaahmetovic

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Hot Comments, Hot List

Related Entities

Senad Karaahmetovic