Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Apple: iPhone 16 lead times stabilizing - Morgan Stanley

Published 09/30/2024, 09:42 AM
© Reuters
AAPL
-

Investing.com -- According to Morgan Stanley analysts, lead times for Apple (NASDAQ:AAPL)'s iPhone 16 Pro and Pro Max models are stabilizing and even extending, marking an unexpectedly positive development.

The bank said that as of September 27, iPhone 16 lead times remain shorter than those seen in the last three iPhone cycles, but the recent stabilization of the iPhone 16 Pro/Pro Max models is noteworthy.

"At T+14, iPhone 16 Pro/Pro Max lead times have both extended by 2 days vs. T+11, vs. iPhone 14 & 15 Pro/Pro Max lead times contracting 4-5 days at this point," Morgan Stanley analysts stated.

This elongation suggests that the iPhone 16 Pro/Pro Max demand trajectory is more closely aligned with the successful iPhone 12 and 13 cycles rather than the weaker iPhone 14 and 15 models.

"We are seeing this same trend internationally too, with lead times for the iPhone 16 Pro/Pro Max extending by ~2 days, on average, vs. last Tuesday in all regions but Chin," the bank said.

Morgan Stanley added that this extension resembles the trajectory seen with the iPhone 12 and 13 models, which also experienced elongating lead times due to supply chain disruptions. However, no such disruptions have been reported for the iPhone 16 models.

Although Apple recently adjusted its wafer orders at TSMC, Morgan Stanley does not believe this reflects softening demand for the iPhone 16.

"Apple likely has excessive processor inventories," the analysts pointed out, emphasizing that the wafer adjustment is not a direct indication of current demand trends.

While Morgan Stanley's view on the iPhone 16 cycle remains unchanged, they are closely watching this emerging trend of stabilizing lead times as a potentially positive indicator.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.