Apple Stock ( NASDAQ:AAPL )
The crucial part of the holiday shopping season is now upon us. Christmas is only a little more than four weeks away now that Black Friday has passed. Because the current quarter generates the most revenue of any quarter during the company’s fiscal year, this is the busiest time of the year for technology giant Apple ( NASDAQ:AAPL ). Sadly, one ghost from a recent Christmas has returned and is threatening this holiday season.
Longer Shipping Times May Hurt Holiday Sales
China’s zero-covid policy is imposing restrictions in some of the country’s critical areas as the coronavirus is once more spreading throughout the nation. Large-scale demonstrations have occurred at Foxconn’s Zhengzhou plant, a key iPhone manufacturing facility. Wedbush analyst Dan Ives reported last Friday that inventory levels in many stores as we approach December appear to be 25% to 30% below average, suggesting that there may be significant shortages of the iPhone Pro 14. Apple has already expressed concern that the longer-than-anticipated shipping times for the iPhone Pro will hurt holiday season sales.
This year, lower than usual Pro model inventories are a double-negative. First, Apple separated the top-of-the-line models further by not including its most recent chipset in the two base models of the smartphone. This has shifted the sales mix in favor of the Pro versions. The second point is that this December’s fiscal Q1 is 14 weeks long due to how the calendar falls, ending on December 31st. Christmas marked the end of the previous period, giving this year more time to generate sales.
Amit Daryanani of Evercore discussed the financial effects of recent iPhone shutdowns in a different analyst note that also addressed the stabilization of iPhone lead times. The an...
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