Investing.com -- Apple's iPhone 16 Pro and Pro Max models exhibit extended shipping times, with the Pro at an average of 13 days and the Pro Max at 20 days globally, as of October 2, which is slightly less than previous years, Bank of America (NYSE:BAC) said in a Wednesday note.
BofA suggests that the initial demand might be subdued due to the absence of Apple Intelligence features at launch but expects a demand surge once these AI features become available, particularly in the U.S.
As such, the bank’s analysts maintain a Buy rating on Apple Inc (NASDAQ:AAPL) stock, citing expectations of a “multiyear iPhone upgrade cycle, tailwind to gross margins, and strong cash flows.”
In comparison, the standard iPhone 16 and the iPhone 16 Plus are more readily available across the globe.
The iPhone 16 shows a global ship time of 5 days, while the Plus model is at 3 days, with the latter being in stock for most configurations across various regions. This indicates a higher availability for the non-Pro models of the iPhone 16 series.
In China, the iPhone 16 Pro and Pro Max models have shorter lead times than in other regions, standing at 10 days and 2-3 weeks, respectively. In contrast, in Japan, the base iPhone 16 model has a longer lead time of 7-10 days, compared to 1-3 days in other international markets.
In the U.S., carrier lead times for the iPhone 16 series are shorter than those on Apple's website, “which could suggest more supply at carriers,” analysts noted.
Last week, a fire at Tata's iPhone component plant in India caused a production halt. The facility provides back panels and other components for the iPhone 15 and 14 models to Foxconn India and Tata's own assembly operations.
However, BofA does not foresee any immediate impact on iPhone supply, noting that Apple's suppliers usually maintain adequate component inventories for assembly.
“Apple can also mitigate the impact by supplying the components from other regions until the Tata plant resumes production,” analysts explained.