Citibank: Delivery time for the basic model of iPhone 16 extended by one week, still supports a "buy" rating for Apple Inc. (AAPL.US).

Investment company Citigroup pointed out in a report on Monday that there have been some fluctuations in delivery times for the latest iPhone 16 series from Apple Inc. (AAPL.US) in different regions. The firm's analyst Atif Malik mentioned in an investor report that compared to September 13, data tracked on September 20 showed that the average delivery time for the two base models had been extended by about a week globally. He gave Apple Inc. a "buy" rating and set a target price of $255. Malik specifically noted that delivery times for the iPhone 16 Pro model had increased by 3 to 7 days in the US, UK, and India, while they had decreased by about 12 days in China. As for the Pro Max model, delivery times remained unchanged in the US and UK, increased slightly in India, and decreased in China. He explained that compared to the iPhone 15, base model delivery times were roughly the same except for the Chinese market, while the Pro models had been shortened. Nevertheless, he noted that the supply chain situation for the entire series had improved this year. Malik believes that the Apple Intelligence feature in the upcoming iOS 18 operating system may affect the sales cycle and seasonality of the iPhone 16 series. Analysts at JPMorgan also observed similar trends, reporting that global delivery times for the iPhone 16, 16 Plus, 16 Pro, and Pro Max had increased to 17 days, 16 days, 23 days, and 29 days respectively. Compared to the previous generation models, delivery times for the Pro model had been reduced. In the US, the delivery time for the iPhone 16 Plus saw the most significant increase, from 5 days earlier in the week to 13 days. The delivery time for the Pro Max model also increased from 23 days to 28 days. JPMorgan analysts emphasized that observing whether delivery times would enter the third week and the extent of its changes before the more widespread release of Apple Intelligence would be critical data points for evaluating demand momentum in the second half of 2024. Analysts at Goldman Sachs Group, Inc. stated that Apple Inc.'s delivery times for the iPhone 16 were similar to last year's iPhone 15, but demand for the high-end Pro models appeared to be weaker. This indicates that while demand for Apple Inc.'s base models is strong, there hasn't been the super cycle effect seen in previous years. This investment bank on Wall Street predicts that as supply gradually meets demand, delivery times will stabilize.