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Apple iPhone Lead Times Expected to Rise on Strong Demand

"Positive demand drivers [for Apple's phones] should lead to expansion of lead times heading into week two of ordering," J.P. Morgan says.
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Apple's  (AAPL)  iPhone lead times -- the time between a customer order and delivery to the customer -- should rise, an indication of strong demand for the handsets, J.P. Morgan analyst Samik Chatterjee said in a report.

“The iPhone 12 and 12 Pro were launched Oct. 13 and have been available for pre-order since Oct 16. Delivery-at-home/in-store pickup is to begin as early as Oct. 23,” he wrote.

“We see lead times tracking on average at about 13 to 24 days for iPhones 12/12 Pro, with lead times for the 12 Pro materially higher than the 12.”

The analyst added that the "early lead times are quite similar to what we saw with the SE launch. [And] positive demand drivers should lead to expansion of lead times heading into week two of ordering based on the precedent set from the SE launch earlier this year.”

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Morningstar analyst Abhinav Davuluri offered a mixed assessment of Apple in his discussion of the new phones last week.

“While we suspect the 5G capability and updated cameras (the Pro variant boasts a Lidar scanner to autofocus in low light) will be major draws for many customers, we think market expectations for iPhone sales in the coming quarters may be too aggressive,” he wrote.

“We are maintaining our $71 fair value estimate for narrow-moat Apple, and we view  [the]shares as overvalued at current levels.”

Apple shares recently traded at $119.46, up 0.4%. They have jumped 62% this year. The stock is 14% below its 52-week high near $138, set early in September.