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Apple iPhone 13 Output Reportedly Delayed Due to Parts Issue

The pandemic is stalling production in Vietnam of camera components for the Apple iPhone 13.
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Buyers of Apple's  (AAPL) - Get Apple Inc. (AAPL) Report iPhone 13 reportedly will endure delays, as the pandemic is stalling production of camera components for the phone in Vietnam.

The news came from Nikkei Asia, which cited knowledgeable sources.

"Assemblers can still produce the new iPhones, but there's a supply gap [in] that the inventories of the camera modules are running low," one of the sources said. 

"There's nothing we can do but to monitor the situation in Vietnam every day and wait for them to ramp up the output."

Things may get better in mid-October, as production at one of the important factories in southern Vietnam has gradually resumed operations in recent days, one of the sources said.

The waiting time for an iPhone 13 Pro Sierra Blue with 512 gigabytes of storage now totals up to five weeks in China, five weeks in Japan and four weeks in the U.S., according to Apple’s web site.

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The Cupertino, Calif., tech giant declined to comment to Nikkei.

How the Long Tech Rally Evolved

Apple shares recently traded at $142.57, up 0.5%. They have slid 4.5% in the past month, as technology stocks have taken a beating.

Morningstar analyst Abhinav Davuluri puts fair value at $124 for Apple.

“Apple’s competitive advantage stems from its ability to package hardware, software, services, and third-party applications into sleek, intuitive, and appealing devices,” he wrote in July. 

“This expertise enables the firm to capture a premium on its hardware, unlike most of its peers.”

To be sure: “Given the short product cycles of Apple’s products and army of firms targeting its dominance, we do not believe Apple has a wide economic moat.”