In a note to clients — as reported by “AppleInsider” (www.appleinsider.com) Evercore Partners analyst Rob Cihra says rumored supply issues may limit availability of the new iPhone at launch, but severe constraints have actually been a boon to Apple’s stock price. The next gen iPhone is expected to be unveiled at next week’s Apple media event.
Cihra says that over the past three years Evercore Partners found that Apple stock has performed 2.2 times better in a quarter after the company noted that iPhone supply was constrained. The stock also performed 1.2 times better in a quarter after management noted supply of the iPad was constrained.
Cihra thinks the stock performs better when products are constrained because investors recognize customers will wait for a unique Apple product rather than simply buying a competitor’s alternative, notes “AppleInsider.” The analyst adds that if supply exceeds demand, it enables investors to imagine what numbers could have been if Apple had been able to meet supply.