Apple (AAPL) iPhone 16 Lead Times Tracking Lower, Morgan Stanley Notes - Investing.com
Apple stock dips premarket as Morgan Stanley reports shorter lead times for iPhone 16 compared to previous models. Should investors be concerned about potential revenue impact?
In a note released on Tuesday, Morgan Stanley revealed that iPhone 16 lead times in the U.S. are averaging 15.2 days, down from 25.7 days for the iPhone 15 at the same point last year. Internationally, lead times for the iPhone 16 are averaging 16.3 days, a significant decrease from 28.5 days for the iPhone 15.
While this may signal improved supply for Apple, Morgan Stanley analysts urge caution, stating that these early data points may not accurately predict the full sales cycle. Lead times for the iPhone 16 Pro and Pro Max models are notably shorter than in past cycles, with the iPhone 16 Pro Max lead times at 25.5 days in the U.S., down from 43.5 days for the iPhone 15 Pro Max.
Despite positive demand for the iPhone 16, analysts warn of a potential greater than 50% chance of iPhone build cuts in the coming weeks, which could impact revenue in the December quarter. Any build revisions are expected to materialize in early-to-mid October, potentially affecting Apple's revenue forecasts for Q4.
In conclusion, while shorter lead times for the iPhone 16 may seem like a positive sign for Apple, investors should be wary of potential revenue impacts from build cuts in the near future. Stay tuned for updates as the situation unfolds.