Apple still can’t align the production with the demand

Jan 4, 2022 14:40 GMT  ·  By

The iPhone 13 remains in a very hot demand pretty much everywhere across the world, as Apple can’t build enough units to deal with the long waiting times in some markets.

In other words, the iPhone 13 is a hit, and according to an analyst note from Wedbush, the device performed really well during the holiday season.

While no figures are available at this point, pretty much because Apple doesn’t disclose such data, the iPhone 13 is spearheading what analyst Daniel Ives describes as the “strongest product cycle in over a decade.”

“While the supply chain shortages has dominated the Street conversation around Apple in the holiday quarter, we instead are focused on the robust consumer demand story shaping up for iPhone 13 into 2022. Based on our supply chain checks over the last few weeks, we believe demand is outstripping supply for Apple by roughly 12 million units in the December quarter which now will add to the tailwinds for Cupertino in the March and June quarters as the supply chain issues ease in 1H22,” the analyst said.

The component shortage

Ives correctly predicted Apple would hit $3 trillion market valuation, and now he says the Services business will continue to grow and grow.

“The linchpin to Apple’s valuation re-rating remains its Services business which we believe is worth $1.5 trillion in the eyes of the Street, coupled by its flagship hardware ecosystem which is in the midst of its strongest product cycle in over a decade led by iPhone 13. The Services business is further monetizing the Apple golden installed base and poised to reach $100 billion+ annual revenue by 2024,” he said.

Apple keeps struggling with the component shortage, but as this issue is being resolved, sales of new iPhones are expected to reach new record levels throughout the year.