Citi: Delivery time for the base model of iPhone 16 extended by one week, still maintains a "buy" rating for Apple

Zhitong
2024.09.24 06:49
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Citigroup analyst Atif Malik pointed out that the delivery time of the Apple iPhone 16 series has fluctuated in different regions, with the base model delivery time averaging about one week longer. Despite this, Citigroup still rates Apple as "buy" with a target price of $255. JP Morgan also observed a similar trend, with global delivery times for the iPhone 16 series increasing. Malik believes that the Apple Intelligence feature in iOS 18 may affect the sales cycle

According to the Zhitong Finance and Economics APP, investment firm Citigroup pointed out in a report on Monday that the delivery times of the new iPhone 16 series from Apple (AAPL.US) have fluctuated in different regions. Analyst Atif Malik mentioned in an investor report that compared to September 13, data tracked on September 20 showed that the delivery times of the two base models globally have increased by an average of about one week. He gave Apple a "buy" rating and set a target price of $255.

Malik specifically noted that in the United States, the United Kingdom, and India, the delivery times for the iPhone 16 Pro model have increased by 3 to 7 days, while in China, it has decreased by about 12 days. As for the Pro Max model, the delivery times in the United States and the United Kingdom remained the same, increased in India, and decreased in China.

He explained that compared to the iPhone 15, except for the Chinese market, the delivery times for the base model are roughly the same, while the professional model has been shortened. Nevertheless, he observed an improvement in the supply chain situation for the entire series this year. Malik believes that the Apple Intelligence feature in the upcoming iOS 18 operating system from Apple may impact the sales cycle and seasonality of the iPhone 16 series.

Analysts at Morgan Stanley also observed similar trends, reporting that the global delivery times for the iPhone 16, 16 Plus, 16 Pro, and Pro Max have increased to 17 days, 16 days, 23 days, and 29 days respectively. Compared to the previous generation models, the delivery time for the Pro model has been shortened.

In the United States, the delivery time for the iPhone 16 Plus has increased significantly, from 5 days earlier this week to 13 days. The delivery time for the Pro Max model has also increased from 23 days to 28 days.

Analysts at Morgan Stanley emphasized that observing whether the delivery times will enter the third week and the extent of the changes before the wider release of the Apple Intelligence feature will be a key data point to assess the demand momentum in the second half of 2024.

Analysts at Goldman Sachs stated that Apple's delivery times are similar to the iPhone 15 from the same period last year, but the demand for the high-end Pro models seems weaker. This indicates that while demand for Apple's base models is strong, there has not been a super cycle effect seen in previous years. This investment bank on Wall Street expects that as supply gradually meets demand, delivery times will stabilize

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