Wall Street analysts report that increased Apple Inc. (AAPL) smartphone shipments in the past month could prove that supply chain problems are gradual. The news was the driver of the growth of AAPL shares by more than 3%, to $135.87 at auction on June 24. Analysts at the investment bank UBS reported that iPhone shipments increased by 16% compared to the April level.
The reason is the restoration of production facilities and logistics. In particular, the restrictions in China related to COVID-19 are beginning to weaken. In addition, supply chain problems also have a lesser impact on the work of large suppliers. Recall that last month, the administrations of the regions of China announced the lifting of some restrictions imposed after the next wave of coronavirus outbreaks a few months ago. Then the iPhone assembly shops were also closed, which led to an acute shortage of ready-made smartphones in some markets.
But now, after lifting restrictions, many enterprises have returned to regular operation, saving the smartphone manufacturer from the emerging shortage. According to UBS experts, total iPhone shipments increased by 13% year-on-year and by 155% compared to the previous month. Thus, the investment bank maintained its estimated iPhone shipments in the second quarter at 42 million but admitted that such a forecast might be conservative due to rapidly growing loads. In addition, UBS confirmed its “buy” rating for AAPL shares and a target price of $185. On Wall Street, Apple is likely recovering from several supply chain problems and returning to more stable production and logistics.