Declining lead times for iPhone 15 series means sales are weakening says analyst،
The analyst wrote a research note to clients on Monday in which he wrote that delivery times iPhone15 Series is now lower than it was for last year’s iPhone 14 lineup during the same period and called it another sign of weaker demand for 2023 models. Apple stock has fell for six consecutive trading days and another day of decline today would have resulted in the longest losing streak for stocks since January 2022. However, the streak ended when the stock rose 12 cents today .
Chatterjee still has an overweight rating on the stock, meaning fund managers should have a higher percentage of their portfolio in Apple than the benchmark they’re trying to beat. For example, Apple currently makes up about 7% of the S&P 500. Fund managers trying to beat the S&P 500 should have more than 7% of their funds in Apple, according to the analyst.
In the research note, the analyst writes: “Average lead times are now one day for iPhone1515 days for the 15 Pro and 25 days for the 15 Pro Max, all of which are on or below the delivery times of the respective 14 series models in week 6 a year ago.
By Barron’sother analysts also note the drop in delivery times for iPhone15 double. UBS analyst David Vogt noted that last week the delivery time for the iPhone 15 Pro decreased by five days compared to the iPhone 14 Pro at the same time last year. Ironically, while faster delivery times are good for iPhone buyers, they’re not good for Apple investors. Strong iPhone sales are very important to Apple because it is the company’s most important product. The iPhone generated $205.5 billion in revenue of the company’s $394.3 billion last year, or 52.1 percent.
Apple’s next earnings report will be released on November 2 and we can’t wait to see the revenue generated by the iPhone for the quarter which will be the fourth fiscal quarter of 2023 for Apple. During last year’s fourth quarter financial report, Apple announced that thanks to iPhone14 launch, sales of its handset increased 9.67% year-on-year to $42.63 billion.
