Morgan Stanley: Apple's supply chain improvement reduces delivery time for iPhone 16 compared to the 15 series
Morgan Stanley's report states that the overall delivery time of Apple's iPhone 16 has decreased compared to the previous year, with the delivery times of the base model, Plus, Pro, and Pro Max all shorter than the iPhone 15. The current average delivery time for the iPhone 16 is 13.25 days, lower than the 20.9 days for the iPhone 15. Despite an increase in delivery times for the Pro and Pro Max models, demand is still rising. Apple is requesting suppliers to prepare component inventories in advance to avoid supply shortages. The first phase of Apple Intelligence is expected to be released on October 28th
According to CNBC, Morgan Stanley reported that the overall delivery time for the iPhone 16 from Apple Inc. (AAPL.US) has decreased compared to the previous year, but the delivery time for the Pro and Pro Max models has recently increased as the first phase of Apple's AI feature, Apple Intelligence, is expected to launch on October 28th.
Overall, the delivery times for the base model, Plus, Pro, and Pro Max of the iPhone 16 are shorter one month after release compared to the iPhone 15. During this period, the average delivery time for all iPhone 15 models was 20.9 days. According to Morgan Stanley's data, the current average delivery time for all iPhone 16 models is 13.25 days. However, the delivery times for the iPhone 16 Pro and Pro Max have recently increased by 2 days each, reaching 20.5 days and 27.5 days, indicating an increase in demand; still lower than last year's models at 34.8 days and 27.5 days.
Analysts at Morgan Stanley led by Erik Woodring stated in a report on Tuesday, "Our checks with the supply chain indicate that in this cycle, Apple has asked suppliers to prepare component inventories earlier than usual to avoid supply constraints, whereas in past cycles, supply shortages led to supply-demand imbalances for the new iPhone Pro/Pro Max models for several months. We believe that better supply conditions are one of the reasons why delivery times for iPhones in this cycle are shorter than in recent cycles."
The first phase of Apple Intelligence is expected to be released on October 28th, when Apple will roll out the iOS 18.1 update to U.S. users. This update will include new writing tools, a new Siri interface, text and email summaries, a "clean-up" feature for photos, audio transcriptions, and improvements to the Safari browser.
The company will introduce more Apple Intelligence features in the December iOS 18.2 update. However, updates for non-English versions are expected to be released in March 2025.
Furthermore, Morgan Stanley also pointed out that the iPhone SE4, priced around $499, will allow Apple to enter the low-end smartphone market, which has a potential market of 837 million units globally, estimated to be released in March 2025.
Additionally, another potential catalyst for Apple is the new iPad mini tailored for Apple Intelligence, which will be launched on October 23rd