Overwhelming iPhone 6 & 6 Plus demand continues to result in tighter supply for Apple than 2013

Posted:
in AAPL Investors edited December 2014
Consumer demand for Apple's latest iPhone 6 and iPhone 6 Plus continues to outstrip supply heading into the end of the December quarter, according to the latest research from store polls conducted by Piper Jaffray.




The investment firm issued a note on Monday, a copy of which was provided to AppleInsider, that shows availability of the newest iPhone models continues to improve, but has not yet caught up with demand. Analyst Gene Munster said that his surveys found 56 percent of core configurations were in stock as of last Friday, Dec. 12.

Munster expects that availability will approach 80 percent by the end of the quarter, but he had initially hoped that Apple would reach 100 percent in-stock before the end of the month.

Still, the iPhone 6 and 6 Plus availability found by Piper Jaffray is actually a decrease from last month, when Munster's survey of 80 Apple Stores found that 58 percent of models were in-stock on Nov. 14. Supply is, however, up considerably from the 6 percent availability tracked in mid-October.




The inventory situation for the iPhone 6 and iPhone 6 Plus is tighter than last year, when the iPhone 5s and iPhone 5c were Apple's latest models. It's believed that Apple is seeing particularly high demand for its newly redesigned iPhone models with larger displays.

Munster believes Apple likely knew its supply limits when the company issued guidance for the December quarter. As a result, he doesn't think there is a risk to its numbers for the three-month frame, though he did say the supply constraints could limit upside potential.

Piper Jaffray also checked the availability of iPhones in Apple's online store in nine countries, and found that online lead times have improved to 3 to 5 business days. He said that's about on par with expectations.
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Comments

  • Reply 1 of 31
    Cook did say they didn't expect to be fully stocked again until 2015 at the earliest.
  • Reply 2 of 31
    gtrgtr Posts: 3,231member
    And in related news, Apple has just patented the word "MegaBajillion" which they intend to use in their next quarterly announcement of iPhone sales figures.
  • Reply 3 of 31
    gtr wrote: »
    And in related news, Apple has just patented the word "MegaBajillion" which they intend to use in their next quarterly announcement of iPhone sales figures.

    Will that be used for revenues or units sold?
  • Reply 4 of 31
    With supply still constrained, is it possible Apple might consider delaying the release of the next iPhones?
  • Reply 5 of 31
    tundraboytundraboy Posts: 1,887member
    "Munster believes Apple **likely knew its supply limits** when the company issued guidance for the December quarter."

    No shit Sherlock.
  • Reply 6 of 31
    radarthekatradarthekat Posts: 3,855moderator

    Quote:

    Originally Posted by GTR View Post



    And in related news, Apple has just patented the word "MegaBajillion" which they intend to use in their next quarterly announcement of iPhone sales figures.

     

    Quote:

    Originally Posted by CustomTB View Post





    Will that be used for revenues or units sold?



    Yes.

  • Reply 7 of 31

    I dont think so stock will be up before 2015

  • Reply 8 of 31
    onhkaonhka Posts: 1,025member
    Quote:

    Originally Posted by TheWhiteFalcon View Post



    Cook did say they didn't expect to be fully stocked again until 2015 at the earliest.

    He did?  Source, please.

    What Cook did say at when he "was asked was asked about when the company would be able to balance its iPhone supply with demand. He said the company is not certain of the total ultimate demand, and is “not even close” to being in balance:

    The [production] ramp is going great. That said, today demand is far outstripping supply. It’s unclear when supply will catch up with demand. I don’t want to leave you with a view that we know we’re going to get to a supply-demand balance. We don’t know that at this point. It’s very difficult to gauge demand without first achieving a balance. It’s very clear we’re not nearly in balance, we’re not close, we’re not on the same planet.

    But it’s clear that demand is great, that’s why we’re giving the very strong guidance we are giving. It’s very unusual to see every country having a marked improvement over last year. And that’s what we’re seeing. We do not envision as of today to be able to achieve the extra inventory in the channel we believe is needed, when you think about the long food chains in some of the emerging markets where the distribution channels are not as efficient. We’re selling everything that we make.

    From everything we can tell we’ve done a pretty good job on that. But I stop short of saying there’s not an issue. But, it’s a good problem to have."

    Fiscal Q4 conference call, Oct 2014

  • Reply 9 of 31
    asdasdasdasd Posts: 5,686member
    3-5 business days is what I saw when I went online to buy from a local carrier. Which is fine, but you still can't walk in and get them.
  • Reply 10 of 31
    mpantonempantone Posts: 2,065member

    Ugh, Gene Munster.

     

    About as credible as Digitimes.

  • Reply 11 of 31
    mpantone wrote: »
    Ugh, Gene Munster.

    About as credible as Digitimes.

    Gene "Herman" Munster.
  • Reply 12 of 31
    I decided to finally get an iPhone 6. The network I was with said they wouldn't have the one I want until December 26th, so I ported my number out to another that had a very small supply left. When I want something I want it now.
  • Reply 13 of 31
    Quote:

    Originally Posted by GTR View Post



    And in related news, Apple has just patented the word "MegaBajillion" which they intend to use in their next quarterly announcement of iPhone sales figures.



    I'd give anything to hear that!

  • Reply 14 of 31
    boredumbboredumb Posts: 1,418member

    ...same thing happened to the guy who built a better mousetrap -

    Apple should have been taking notes.

  • Reply 15 of 31
    so are ipads, demands outstripped supply so much that ipads sold 12m last quarter.
  • Reply 16 of 31
    fracfrac Posts: 480member
    Munster "...[B]hoped[/B] that Apple would reach 100% in-stock before the end of the month"
    Yes...because then he could say that iPhone 6 sales had peaked and posit a negative outlook for the rest of the year.
    Transparent 'Bear' shit.
  • Reply 17 of 31
    "The inventory situation for the iPhone 6 and iPhone 6 Plus is tighter than last year, when the iPhone 5s and iPhone 5c were Apple's latest models. It's believed that Apple is seeing particularly high demand for its newly redesigned iPhone models with larger displays."

    What a bunch of worthless idiot duffases!! DUHHH. How do these guys get/keep their jobs? This must have been written for someone that has been in a coma for the past few months.....
  • Reply 18 of 31
    Other than stating the obvious after the fact, has Gene Munster gotten anything right in the last few years? His one claim to fame was that he was long Apple before the iPhone.
  • Reply 19 of 31
    512ke512ke Posts: 782member
    Gene Munster predicted that AAPL at 730 would go to 1,000 (pre split) but instead the stock got cut down to nearly half its value.

    You gotta hear his words with a great deal of caution and skepticism.
  • Reply 20 of 31
    Ah,

    so the restriction refers to availability of the whole range at each outlet.
    Considering that 6 manufacturing was said to have peaked a while back I now finally understand the grain of truth behind this .


    If spins work, shareholders are well happier.
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