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Channel Checks Still Show Limited Supply Of iPhone 7

Channel Checks Still Show Limited Supply Of iPhone 7
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Piper Jaffray’s latest iPhone 7 channel checks suggest Apple Inc. (NASDAQ: AAPL) shareholders could be in for some strong Q3 and Q4 numbers from the tech giant.

According to analyst Gene Munster, in-store iPhone 7 and iPhone 7 Plus availability remains relatively low. Only 40 percent of SKUs were available in U.S. Apple Stores as of Piper Jaffray’s most recent check, down from 44 percent during the previous check.

Munster notes that, at only 14 percent, iPhone 7 Plus availability is much lower than the standard model’s.

In addition, iPhone availability in China was only 12 percent, up slightly from 10 percent during the previous check.

“We continue to believe that the limited supply of the iPhone 7 should be positive for the Dec quarter outlook as demand shifts from September to December,” Munster explains.

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Despite the lack of availability in Q3, he is still calling for Apple to beat revenue expectations. Piper Jaffray is forecasting $47.5 billion in Q3 revenue versus consensus estimates of $46.5 billion.

Piper Jaffray remains bullish on the remainder of the iPhone 7 cycle and has high expectations for Apple’s 10-year anniversary iPhone next year.

The firm maintains an Overweight rating on Apple and a $151 price target for the stock.

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