Delivery wait times for iPhone X smartphones ordered from Apple's (AAPL) website have shrunk to less than two weeks, but supply of the company's flagship handset is still tight in retail stores.
When Apple began taking preorders for the iPhone X on Oct. 27, expected delivery dates quickly stretched to five to six weeks. Before Thanksgiving, expected shipping dates had shrunk to two to three weeks. For orders placed Friday, Apple promised delivery on Dec. 11.
Apple's website also indicates limited retail availability of most iPhone X models in major U.S. cities.
"Our latest round of carrier store surveys in North America and Western Europe indicates supply of the iPhone X remains extremely limited," KeyBanc Capital Markets analyst John Vinh said in a report Thursday. "A significant number of stores remain sold out and have indicated they have yet to receive replenishment orders after launch."
Other wireless carrier stores said that iPhone X replenishment "remains spotty and limited," Vinh said.
"On average, stores are receiving 5-10 iPhone Xs per shipment and typically indicate the phones sell out soon after," he said.
Meanwhile, iPhone 8 inventories are increasing slightly even though sell-through has improved, Vinh said.
Apple shares were down 0.5% to close at 171.05 on the stock market today.
Apple Could See Upside From Higher iPhone Prices
Guggenheim analyst Robert Cihra on Friday raised his earnings estimates for Apple on expectations for higher average selling prices for iPhones and increased sales in services.
Cihra reiterated his buy rating on Apple with a price target of 215.
IBD'S TAKE: Apple stock has an IBD Composite Rating of 87, meaning it has outperformed 87% of stocks in key metrics over the past 12 months. For more analysis on Apple, visit the IBD Stock Checkup.
He forecasts Apple's revenue growth to re-accelerate in fiscal 2018 to 25%-plus year over year, vs. consensus estimates at 19%-plus. Apple's iPhone business is likely to drive 70% of the company's growth from fiscal 2018 through 2020, he said.
Apple is in the midst of its biggest iPhone upgrade cycle in three years, he said. It's being driven by pent-up demand for a major redesign with the iPhone X. The sales cycle will be fueled by new technology, such as OLED screens, the facial recognition security feature and augmented reality, Cihra said.
Apple's newest handsets, the iPhone X and iPhone 8 series, are priced higher than their predecessors, which will help boost average selling prices, he said. The iPhone X starts at $999.
The iPhone sales growth is likely to overshadow Apple's fast-growing services business in the near-term, Cihra said. But services are growing in importance for the company. Services were 13% of Apple revenue in fiscal 2017, which ended Sept. 30, and are likely to be 14% by 2020, he said.
With gross margins of over 60%, services could account for 33% of Apple's total profit growth over the next three years, Cihra said. He sees services increasing to 24% of Apple's profit pool by 2020 from 21% last year.
Apple's services include its App Store, Apple Music, Apple Pay, iCloud and other offerings.
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