JP Morgan lowers AAPL target to $151 as iPhone 14 Pro lead times increase

iPhone 14 Pro Models


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Apple continues to struggle with high demand for iPhone 14 Pro models. Due to the increase in lead times, investment analyst JP Morgan lowered its price target for the stock.

Demand is so far ahead of iPhone production that by November 17, 2022, when Apple released a list of recommended last dates for purchase, the last day to receive the iPhone 14 Pro had already passed. Now, in a note to investors seen by AppleInsider, buyers won't get an iPhone 14 Pro or iPhone 14 Pro Max in 2022, at least not for buyers who order after November 15, 2022.

The situation is the same. for Apple customers around the world. JP Morgan analysts found that the worldwide lead time for iPhone 14 Pro models is 41 days, while the lead time for iPhone 14 and iPhone 14 Pro is much faster at just two days.

In the US, the lead time for the base iPhone 14 models is slightly longer at three days, while for the Pro models it is about the same at 40 days.

Stripes represent a pre-order not available for pickup. Source: JP Morgan

Pro lead times also increased in the UK and Germany to 40 and 39 days respectively. Base models only have one day in these markets.

For base iPhone 14 models, lead times in China have been reduced to two days, compared to six days on November 14th. The lead time for Pro models in this market is 43 days.

JP Morgan believes the numbers indicate that China continues to face challenges related to the COVID-19 outbreak in Zhengzhou, China, home to Foxconn's largest iPhone plant.

As with the iPhone 14 tracker, the bars represent pre-order, not pickup

For other lines of Apple's business, lead times are less dire. . Worldwide, the Apple Watch Series 8, Apple Watch SE, and Apple Watch Ultra had lead times of six, six, and four days, respectively.

These numbers are short of the corresponding lead times of seven, seven and five days around November 14th. Meanwhile, the AirPods Pro 2 lead time is currently two days, up from three days around November 14th.

JP Morgan set a price target for Apple stock at $200 in April 2022, and the October report was in line with that price. A final note to investors states that as of November 18, 2022, JP Morgan has lowered its price target to $151.29.

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