Supplies are flowing more freely to Apple reducing how long you must wait for your new iPhone
Apple has been running short of iPhone 13 units to ship thanks to the global chip shortage. As a result, the tech firm has reportedly cut production of the iPad by up to 50% in order to use the chips for more popular iPhone models.
Morgan Stanley's Katy Huberty says that the supply chain is working its way back to normal for Apple
For example, the powerful A15 Bionic chipset which is built using TSMC's enhanced 5nm process node is used to power the sixth-generation iPad mini. This is the same chip (which employs 15 billion transistors) that is used for the iPhone 13 series. Each iPad mini 6 tablet that is not built saves an A15 Bionic chipset that can be used to produce an iPhone 13 handset delivering a larger profit to Apple.
The lead times for the iPhone 13 series have been shrinking
So Apple doesn't have to worry about demand for the new iPhone models as much as supply. But according to Seeking Alpha, supply is slowly working its way back to normal levels. And the timing couldn't be better for Apple with Black Friday officially kicking off tomorrow. Promised delivery dates for the iPhone 13 Pro Max.
Morgan Stanley tech analyst Katy Huberty says that there are signs that things have been stabilizing over the last several weeks. Huberty says, "Recent checks indicate supply of power management IC's [integrated circuits, or microchips] and world-facing camera modules for the iPhone 13 Pro [and] Pro Max is improving," Huberty said. "[This is] indicating that iPhone builds will likely sequentially improve in November and December."
This news could help Apple make up some of the $6 billion in revenue it lost during the fiscal fourth quarter due to supply chain shortages. And this shortfall might be even higher during the current quarter which makes it more important for Apple to get its iPhone production on track. During last year's holiday quarter (which is the fiscal first quarter for Apple), iPhone sales made up 59% of Apple's revenue.
Apple iPhone lead times have been shrinking
As of this past Tuesday, November 23rd, lead times for the iPhone 13 Pro and iPhone 13 Pro Max were weighing in at 19.5 days. The lead time measures how long it takes from the time an iPhone is ordered to the time that it is delivered. 67 days since Apple started accepting pre-orders for the iPhone 13 series, the lead time "is the second strongest among all [iPhone models in the last five years."
The good news is that since early November, the lead time for the iPhone 13 Pro and iPhone 13 Pro Max has dropped by seven days. The analyst says that delivery dates are also dropping for the iPhone 13 and iPhone 13 mini.
Besides improving lead times, J.P. Morgan analyst Samik Chatterjee said earlier this week that there are signs showing that last month Apple shipped a record number of iPhone units to China. The information leads Huberty to state that "All of this contributes to our view that October iPhone data was negatively skewed by production headwinds. Data for the month of November should show an above-seasonal improvement relative to October."
There are good reasons to upgrade to an iPhone 13 Pro or iPhone 13 Pro Max
Why should you upgrade from the iPhone 12 to the iPhone 13? There are several good reasons. One is the larger capacity batteries that lead to longer battery life. There is also the ProMotion display used on the iPhone 13 Pro models that updates the screen 120 times per second. This delivers buttery smooth scrolling, enhanced transitions, and improved animations.
The Cinematic mode uses what those big shots in the movie industry call rack focus. It switches the focus between two subjects so that one is sharp and the other blurry (similar to the bokeh effect) and then switches back the other way. You'll feel like the next Spielberg using this feature. If you're into making movies, this feature is a good reason to upgrade.
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