4. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 184
Apple Inc (NASDAQ:AAPL) iPhone 16 delivery times are lagging behind historical trends, but analysts suggest this could be due to stronger supply and high-end buyers holding off for the upcoming Apple Intelligence.
“In Week 3 of our Apple Product Availability Tracker, delivery lead times are showing trends which, if continued, will explain the weaker lead times for the Pro models in the initial weeks as only an aberration led by a combination of better supply mix as well as delay in pick up in momentum from higher-end consumers awaiting the release of Apple Inc (NASDAQ:AAPL) Intelligence,” J.P. Morgan analysts, led by Samik Chatterjee, stated in a note to investors.
Shipping times for iPhone 16 base models in the U.S. improved to 10 days in week three, compared to 17 days the previous week. However, the iPhone 16 Pro and Pro Max models saw no change, remaining at 23 and 29 days, respectively. The trend in China mirrored this, with base models seeing faster delivery times while Pro versions stayed steady.
“In aggregate, although overall lead times for the iPhone 16 models are still lower relative to iPhone 15 last year, narrowing of the gap between the two groups (Base vs. Pro) over the last week as well as steady lead times for the Pro models are highlighting the likelihood that the initial slower momentum in demand for the Pro models is correcting itself with the release of Apple Inc (NASDAQ:AAPL) Intelligence drawing closer,” Chatterjee added.
Morgan Stanley’s data echoed this sentiment. “iPhone 16 lead times as of Sept 27th are still tracking lower than the past 3 iPhone cycles, but lead times for 16 Pro/Pro Max models are now extending/stabilizing across all regions that we track, an unexpectedly positive development,” noted analysts led by Erik Woodring.
Interestingly, lead times for the Pro and Pro Max have grown by two days since last week, a trend more in line with the iPhone 12 and 13 models, rather than the iPhone 14 and 15, which saw shorter wait times at this stage in the cycle. “But interestingly, iPhone 16 Pro/Pro Max lead times have extended by 2 days since last Tuesday, an unexpectedly positive trend that more closely resembles the trajectory of the better-performing iPhone 12 and 13 Pro/Pro Max models,” Woodring added.
Columbia Contrarian Core Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) – Despite the stock falling after announcing earnings in late May, Apple regained ground toward the end of the quarter, fueled by the company’s long-awaited AI announcement at its annual Worldwide Developers Conference (WDC). At the conference, the company showcased some of its new AI features powered by Apple Intelligence that would be coming to Apple products and also announced a partnership with ChatGPT. Investors greatly welcomed the announcement of Apple’s AI strategy and the stock surged, passing Microsoft as the world’s most valuable company (although this hallmark wouldn’t last). Beta testing of these new features will be coming later this summer, but the initial promise and excitement looks to be a potential catalyst for an upgrade cycle, as the company looks to persuade users who have had the same smartphone for years to consider an upgrade.”
