Apple Inc. (NASDAQ:AAPL) surged over 1.52% in pre trading session on Tuesday as it revealed that it will manufacture the iPhone 14 in India, as the tech giant shifts some of its manufacturing away from China.
With the exception of a new adventure-focused watch, the firm announced the flagship iPhone 14 during an event earlier this month, focusing on safety updates rather than showy new technological capabilities.
“The new iPhone 14 series includes ground-breaking new technology as well as critical safety features. We’re thrilled to be producing the iPhone 14 in India “According to a statement issued by Apple.
According to J.P.Morgan analysts, Apple will shift roughly 5% of iPhone 14 manufacturing to India beginning in late 2022, the world’s second-largest smartphone market after China.
An analyst at JPMorgan, Samik Chatterjee said in a note to clients Sunday that IPhone demand continues high for the Pro models but lower for the base models compared to a year ago, with 14 Pro and Pro Max lead times tracking in line with 13 Pro and Pro Max lead times, offset by shorter base model wait times.
Apple Inc. (NASDAQ:AAPL) reported the gain of + 0.23% and closed at $150.77 with the total traded volume of 93.33 million shares. Its price to sales ratio ended at 6.35 and its price to cash per share was 51.01. Its market capitalization is $2.42 trillion. The stock owned by the Financial Institutions was 59.90% while by insiders was 0.07%.
iPhone 14 May less popular with Chinese Customers
According to Jefferies analysts, including Edison Lee, Chinese customers purchased less Apple Inc. (NASDAQ:AAPL) iPhone 14 devices in the first few days of availability than the product’s predecessor a year earlier.
According to Bloomberg, citing Jefferies, Apple’s current smartphone series sold 987,000 copies in the first three days of availability, 11% less than comparable sales of the iPhone 13 family last year.
It’s a rare double-digit drop for the iPhone, whose sales had been the most durable in a Chinese smartphone industry where domestic leaders had slumped all year.
Because pre-orders do not come with payment commitments, the early statistics revealed that iPhone 14 sales may not be as robust as the pre-order numbers indicated.
In July, smartphone shipments in China plummeted by over a third to 19.1 million, continuing a year of declining sales in the world’s largest mobile market.
Apple has begun building iPhone 14 units in India, expanding its supply chain diversification.
Earlier, BofA analyst Wamsi Mohan predicted that the iPhone 14 Pro models will ship later than last year’s pre-order cycle.
The iPhone 14’s ship dates were most pushed back in China, where the company kept the iPhone pricing the same, expecting growth to offset the ASP impact from price and FX.
Mohan further stated that the reduced differential between the iPhone 14 series and the Pro variants meant that overall demand for the iPhone 14 was weaker.