The upcoming holiday season may not be so joyful for the tech giant Apple (NASDAQ:AAPL) as it expects lower shipments of the latest iPhone series, despite strong demand from customers.
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The delay in iPhone 14 Pro and iPhone 14 Pro Max shipments is being caused by strict COVID-19 restrictions in China, which forced Apple’s assembling unit in Zhengzhou to operate at a reduced capacity. Last week, the Chinese government ordered a lockdown in the area where this facility is located, owing to the breakout of several COVID-19 cases.
The majority of Apple’s revenue comes from its pricey iPhone segment. While the company may not be able to fill all its orders this year, the craze for its latest model is likely to motivate clients to wait longer than usual.
In a press release, the company assured, “We are working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker.”
Is Apple a Buy, Sell or Hold?
At TipRanks, Apple stock is currently a Strong Buy based on 20 Buys and four Hold ratings. The average AAPL stock price target of $181.25 implies 30.98% upside potential.
