Supply Of Apple Inc. iPhone 6 Improves, Still Remains Tight

Overall supply for Apple Inc. (NASDAQ:AAPL)’s iPhone 6 improved even though demand remains tight. This report comes from Piper Jaffray analyst Gene Munster.

Supply Of Apple Inc. iPhone 6 Improves, Still Remains Tight

He further explained Apple stores indicated that 56% of iPhone 6 and iPhone 6 Plus models were available as of Dec. 12. This was a huge increase from the month prior, but unfortunately it is still not at the 100% availability initially expected. Supply issues appear to be a problem, but that happens every year with the release of a new iPhone. By the time the holidays roll around, things can get even more hectic.

A look back at last year’s supply issues

In 2013, iPhone 5S supply matched the demand from December, but this year it has taken longer to catch up. Munster estimated it to be about 80% towards the end of the quarter. Munster’s team estimated supply and demand for the availability of 12 iPhone 6 and iPhone 6 Plus models from Apple stores. The phones were tracked in eight states within the United States. The analyst discovered the supply had increased, however, it was still  below the typical amount expected.

Taking a peak inside Apple stores within eight countries outside the United States, the analyst discovered that supply increased, however, it is also below the typical amount expected. Apple’s U.S. online retail store shows a ship time of one to three business days for both the 16GB and 64GB versions. The ship times improved from last week’s three to five days.

Xiaomi’s battle with Apple

In other Apple-related news, China-based phone maker Xiaomi is still facing tough competition from the Cupertino-based iPhone maker. Xiaomi is the third largest smartphone maker, however, it only pulled in 347.5 million yuan in net profits from 26.6 billion yuan last year. Apple reported $25.4 billion in net sales last year in the greater China area. Compared to Xiaomi’s 1.8% in profit margins, Apple’s profit margins stood at 33%.

Get our newsletter and our in-depth investor case studies all for free!

  • Dara

    you’re stupid and obviously can’t do basic arithmetic. For the less enlightened, while not suffering from dementia, simply type “Android market share” in google.
    Supply issues? Not because of higher iPhone demand from iTards…More likely because apple has screwed up its manufacturing relationship with Foxconn (again)…take your choice: Worker abuse, hostage taking of laborers and subsequent mass suicide conveniently covered up by the media, another antenna screw up (because a highschool-dropout-turned-engineer at apple figured the plastic iphone box would look cuter if a metal finish was added to it, attached to the antenna of course, and in contact with the iTard’s hand :) etc.

  • mds

    2) They are not fighting for AAPL crumbs; they are eating each other; as well as picking the bones of all other Android run brands.
    AAPL has no crumbs. They are good to the last bite.

  • baligeko

    1) Yes, new iPhones always sell like hotcakes. A situation to be envious of.
    2) Apple does NOT have a battle with Xiaomi (catchy name NOT).
    Samsung and Xiaomi will fight each other for Apple’s crumbs.