Apple Acknowledges iPhone 14 Pro and iPhone 14 Pro Max Supply Challenges

Today Apple posted an item to their Newsroom site titled "Update on supply of iPhone 14 Pro and iPhone 14 Pro Max" . The entire article states:

COVID-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility located in Zhengzhou, China. The facility is currently operating at significantly reduced capacity. As we have done throughout the COVID-19 pandemic, we are prioritizing the health and safety of the workers in our supply chain.

We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.

We are working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker.

It is unusual for Apple to post this type of item. I do not generally like to speculate, but I think this is a significant posting. I am going to postulate that the iPhone 14 Pro and iPhone 14 Pro Max will be in short supply for the foreseeable future, and in particular, for the holidays season. The reason that Apple has posted this is not only to let customers know, but also because the short supply may have a material impact on the financials for this quarter.

The reason for this second one is due to the text posted at the bottom, which begins with

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about expected product shipments and availability.

The supply issues must be significant enough that it warranted Apple posting this. The last time that Apple posted something like this was when they knew they were going to miss their quarterly guidance was in February of 2020, when they posted about COVID affecting supply prior to the start of the pandemic.

I am not worried about the company’s long-term financial outlook, but it could affect the stock price in short-term.

Source: Apple Newsroom