The tech giant Apple previously predicted it would take a $4 billion to $8 billion hit in revenue due to supply difficulties. The reason behind this is the COVID-19 restrictions are still active in China.
According to JP Morgan analyst Samik Chatterjee, lead times (time taken for the customer to receive their order after purchase) have dropped for some Apple products. Although lead times are not always a spot-on assessment of customer demand, they can highlight the balance between supply and demand.
Apple lead times: current status
When it comes to the delivery time for Apple’s Mac, it dropped to less than one month. On the other hand, customers received their purchased iPads approximately twelve days after buying. Talking about the AirPods, purchasers received them in two days.
In the United States, the time of delivery increased for the Apple Watch, but it remained average for other products. Moving on to Western Europe, the lead times remained under a week for the AirPods and iPhone but increased for gadgets. Japan saw an increase in lead times for the iPhone and smartwatch but declined for the Mac.
The users are usually most excited to get their hands on the iPhone, easily the company’s trademark product. When Apple announced that it would face a delay in shipping, it got users worried. However, contrary to the previous predictions, lead times for the iPhone remained at an average of four days across the globe.
Are supply constraints moderate?
Apple had suggested that users could face a big delay in shipment after their purchase. However, according to AppleInsider, Chatterjee believes that the impact of global supply constraints will be average in June, contrary to what the company had predicted.
Before this, TF International Securities analyst Ming-Chi Kuo forecasted that we could see a postponement in the shipping of Apple’s AR/MR headset due to the Shanghai lockdown.