Apple stocks have renewed their maximum, despite production problems

Due to supply issues and other restrictions, the production of new iPhones 13 in September and October decreased by 20%.

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The factories are

According to the Nikkei, some Chinese factories in early October did not work due to a shortage of components. Usually during this period, factories work at full capacity., collecting gadgets for the festive season. Plant closures in Vietnam and Malaysia following a rise in COVID-19 cases exacerbate the problem.

As calculated in the Nikkei, iPhone production for the year will be reduced by 15 million units. According to the company, in November, the situation with the assembly of new models improved. Apple has reduced production of older models and directed all components to the assembly of new ones..

Problems with the assembly became known in October. Bloomberg reported, that Apple suppliers - Broadcom and Texas Instruments - do not have time to supply the necessary components.

Later, Apple itself confirmed the problem.. Quarterly revenue and iPhone sales fell short of analysts' expectations. According to Apple, the company lost $6 billion in revenue due to a shortage of components. The deficit will reduce sales in the next quarter, said the head of the company Tim Cook.

Despite disruptions in production, Analysts Expect Record Apple Holiday Quarter Sales. In their opinion, the company's revenue will increase by 6% comparing with the previous year, up to 118 billion dollars. The end of the year is the most profitable period for Apple.

What about stocks

Most analysts are still positive about Apple. So, According to KeyBank, services will become the main driver of profitability growth. The segment includes revenue, which generate App Store, Apple Music and Apple Pay and other services. The gross margin of this business is 70%, and the gross margin of the device segment is 35%.

But Morgan Stanley believes, that Apple will be able to make good money on new products in the future: virtual reality headset and self-driving car. According to the bank, these incomes are not yet included in the price of securities.

On such news, Apple shares hit a new all-time high and rose to 173 $. Since the beginning of 2021, securities have risen in price by 34%. Index S&P 500 over the same period rose by 27%.