Apple's Supply Chain Problems 'Blown Out Of Proportion,' Says Munster

Zinger Key Points
  • Loyal customers will be willing to wait to get Apple products rather than jump ship - Munster
  • Says supply chain issues are likely to continue to persist but should not pose a risk
  • Estimates those problems have delayed about $27B in revenue over past year

Apple, Inc. AAPL reported strong March quarter results last week but the conversation that followed was centered on the  $4 billion-$8 billion revenue impact stemming from supply chain problems sounded out by the company on the earnings call.

Famed Apple analyst and Loup Funds co-founder  Gene Munster,  however, does not attach too much significance to it.

A "Distraction Vortex:" Apple's supply chain issues have been blown out of proportion and are now somewhat of an "investor distraction vertex," Munster said in a note.

"The conversation of supply chain is important because it masks the pace of intrinsic growth, making it difficult to discern the health of the business."

Looking at the impact supply chain issues have had on Apple's revenues since the June quarter of 2021, Munster said they improved only to worsen in the subsequent quarter. Over the past year, supply chain issues have delayed about $27 billion in revenue, or about 6% of total sales, the analyst estimates.

Related Link:  Apple Analyst Sees Limited Upside/Downside In Stock Until This Happens 

Missing The Forest For The Trees:  Apple, Munster said, makes the best consumer tech products in the worldand consumers are willing to wait to get them. 

"They're committed to upgrading, to expanding the number of Apple products they own, and they're willing to be patient to that end," the analyst said.

This is evident from the  9% revenue growth Apple reported for the March quarter amid the global uncertainty, exceeding the 4% consensus estimate, Munster noted.

"As long as Apple continues with its mission to create the world's best consumer tech products, the supply chain topic isn't going away anytime soon."

Related Link:  Why Apple Should Consider Building Its Own Assembly Supply Chain 

Apple closed Friday's session down 3.66% at $157.65, according to  BenzingaPro data.


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