Morgan Stanley analyst Katy Huberty on Wednesday urged buyers to purchase the dip in Apple (AAPL) regardless of experiences that the tech large might have to chop manufacturing of its signature iPhone 13 by as a lot as 10 million items as a result of international chip scarcity.
“We’re consumers of any near-term Apple share worth weak spot on iPhone supply-chain disruption given Apple is more likely to obtain extra provide than opponents, demand isn’t perishable,” Huberty wrote in a notice.
“If Apple can’t meet near-term demand, the shortfall is more likely to be even better at opponents, creating a chance for share good points,” she wrote in a notice revealed Wednesday.
Shares of the Cupertino, Calif., firm finally verify slipped 1.25 per cent to $139.92 (U.S.).
The funding agency maintained its chubby score on the inventory with a worth goal of $168 a share.
“Whereas we have now not particularly heard of fabric iPhone manufacturing bottlenecks on account of semiconductor shortages at Broadcom (AVGO) or Texas Devices (TXN), broader provide tightness continues to be an actual subject throughout quite a lot of finish markets,” she added.
Broadcom and Texas Devices are manufacturing companions for Apple.
Apple had anticipated to supply 90 million new iPhone fashions within the final three months of the yr.
But it surely’s now telling manufacturing companions that the whole shall be decrease as a result of Broadcom and Texas Devices are struggling to ship sufficient parts, Bloomberg reported, citing sources.
“Our FY22 estimates are unlikely to alter materially even when income and EPS shift throughout quarters,” she added.