iPhone 14 Upgrade Cycle Unlikely to Be Disrupted by China Problems

Analyst says Tim Cook managed to prevent inventory problems

Apple is getting ready to announce the new-generation iPhone, and one of the questions that are currently on everybody’s lips concerns the date when the new models would go on sale.

In theory, Apple starts taking pre-orders for the new iPhones on the first Friday after the launch event, while the actual shipping starts a week later.

However, due to production problems, the company has previously pushed back the shipping of certain models, so many are now questioning Apple’s ability to deal with the chip shortage, the rising costs of other materials, and the shutdowns that took place in China.

But according to Wedbush analyst Daniel Ives, Apple is currently in a position that allows the company to start selling the iPhone 14 without any disruptions, as CEO Tim Cook has managed to secure the necessary inventory despite all the problems encountered this year.

“Despite the zero Covid shutdowns in China that disrupted the Asia supply chain across the board in March-May and caused some white knuckles on the Street, Cook yet again navigated Cupertino through the storm and now is set for another flagship iPhone 14 upgrade cycle to take place over the next 6 to 9 months. While the softer macro will clearly play a role in the demand story, we believe the baseline for 220 million iPhone units in FY23 is likely a low bar given the pent up demand story that we are seeing globally for Apple,” Ives said in a note to investors, as per Ped30.

“In a nutshell, we believe Apple's growth story remains well intact with clear momentum around iPhone 14 around the corner despite the shaky macro.”

Apple will launch four iPhone models this year, namely a 6.1-inch iPhone 14, an all-new 6.7-inch iPhone 14 Max, a 6.1-inch iPhone 14 Pro, and a 6.7-inch iPhone 14 Pro Max.