Black Friday May be Black for Apple Sales
2022.11.23 09:21
Black Friday May be Black for Apple Sales
Budrigannews.com – With longer lead times for high-end models like the iPhone 14 Pro and Pro Max, Wedbush analysts believe that demand for the iPhone 14 is “way ahead” of supply.For the upcoming Black Friday weekend, major shortages are developing as Apple (NASDAQ:)struggles to increase supply in order to meet “strong” demand for iPhones.
This morning, significant protests broke out at the largest iPhone factory in the world, Foxconn, which is Apple’s main supplier, in the Chinese city of Zhengzhou.Apple has previously stated that it is having significant supply issues as a result of China’s contentious Covid-zero policy.
Wedbush stated in a client note that “many Apple stores and retailers are low on iPhone 14 inventory across the board” and that “we believe for Black Friday weekend approximately 8 million iPhones will be sold down from 10 million in the period a year ago with the gap mostly supply driven.”
Recent checks revealed that “getting your hands on an iPhone 14 Pro with many delivery times likely pushed through to early January” is becoming increasingly challenging.
“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,” the analysts added. “While the Zhengzhou and Foxconn situation in China remains an ongoing albatross for Apple,” they continued.
