Apple acknowledged Sunday that COVID-19 restrictions at a major Chinese manufacturing facility will likely result in lower shipments of the iPhone 14 Pro and iPhone 14 Pro Max. Apple executives maintained that demand for both models was strong.
That’s the key question being debated by analysts as they try to gauge the impact of production issues on demand for Apple Inc.’s AAPL, +0.18% iPhone 14 family of devices.
Production issues tend to prompt questions about whether demand will be “destroyed,” or whether orders will be simply pushed out. That was a question once again in the wake of Apple’s announcement, which analysts described as “rare” for the consumer-electronics company given that executives don’t typically communicate with investors about business trends outside of earnings calls.
He looked to history for some examples, writing that “there is limited evidence that delays in shipping devices have had any impact on overall volumes for a product cycle over a multi-quarter period.”
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