Morgan Stanley’s Katy Huberty says that the supply chain is working its way back to normal for Apple
For example, the powerful A15 Bionic chipset which is built using TSMC’s enhanced 5nm process node is used to power the sixth-generation iPad mini. This is the same chip (which employs 15 billion transistors) that is used for the iPhone 13 series. Each iPad mini 6 tablet that is not built saves an A15 Bionic chipset that can be used to produce an iPhone 13 handset delivering a larger profit to Apple.
This news could help Apple make up some of the $6 billion in revenue it lost during the fiscal fourth quarter due to supply chain shortages. And this shortfall might be even higher during the current quarter which makes it more important for Apple to get its iPhone production on track. During last year’s holiday quarter (which is the fiscal first quarter for Apple), iPhone sales made up 59% of Apple’s revenue.
Apple iPhone lead times have been shrinking
As of this past Tuesday, November 23rd, lead times for the iPhone 13 Pro and iPhone 13 Pro Max were weighing in at 19.5 days. The lead time measures how long it takes from the time an iPhone is ordered to the time that it is delivered. 67 days since Apple started accepting pre-orders for the iPhone 13 series, the lead time “is the second strongest among all [iPhone models in the last five years.”
Besides improving lead times, J.P. Morgan analyst Samik Chatterjee said earlier this week that there are signs showing that last month Apple shipped a record number of iPhone units to China. The information leads Huberty to state that “All of this contributes to our view that October iPhone data was negatively skewed by production headwinds. Data for the month of November should show an above-seasonal improvement relative to October.”
There are good reasons to upgrade to an iPhone 13 Pro or iPhone 13 Pro Max
Why should you upgrade from the iPhone 12 to the iPhone 13? There are several good reasons. One is the larger capacity batteries that lead to longer battery life. There is also the ProMotion display used on the iPhone 13 Pro models that updates the screen 120 times per second. This delivers buttery smooth scrolling, enhanced transitions, and improved animations.