Why Apple investors went through a tough time on Tuesday


What happened

Apple (NASDAQ:AAPL) the stock was not particularly bright or tasty on Tuesday. Shares of the tech giant fell 1.4%, a steeper drop than the stagnation suffered S&P500 index. One of the catalysts was a new analyst report, which, while generally positive, highlighted some challenges currently facing the iDevice maker.

So what

That morning, Samik Chatterjee from JPMorgan Chase wrote in a new note that supply issues affecting the production and distribution of Apple’s latest iPhone model are easing.

Citing his company’s Apple Product Availability Tracking Analytics tool, Chatterjee said the delivery of the many components needed for the iPhone 14 is done faster.

As a result, he wrote, “In the US, shipping times for the iPhone 14 and iPhone 14 Plus have reached 5 days each (from 1 day previously), matching the timing of the iPhone 13 and 13 mini last year, while the Pro and Pro Max delivery times were 27 days (compared to 25 days previously).”

This stretch has also improved both in the massive Chinese market. In major European markets such as the UK and Germany, it remained stable.

“Lead time” refers to the period between a customer ordering a phone and receiving it.

Now what

While on the surface this analysis is encouraging for Apple investors, it also illustrates an uncomfortable reality: for all its size and power, the tech giant is not immune to the chain’s woes. of supply that the world has had to face in recent months. Until it completely overtakes them, it will struggle to post the robust growth numbers its investors have come to expect.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman holds positions at Apple. The Motley Fool holds positions and recommends Apple and JPMorgan Chase. The Motley Fool recommends the following options: long calls $120 in March 2023 on Apple and short calls $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.

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