component

Following reports from WSJ that Apple is cutting component orders for iPhone 5 due to “weaker-than-expected-demand,” Jeffries analyst Peter Misek is out today with a note to clients claiming initial production of the iPhone 5S will begin in March for a June/July launch (via StreetInsider):

 “As word of the earlier production schedule starts to spread, we believe we could see a slight slowing of demand CQ1 in anticipation of the new product launch and Apple will likely start curtailing channel inventory. Therefore we tweak down our CQ1 iPhone shipment estimate from 48M to 44M, which is still well above widespread fears of shipments in the mid-30Ms.”

Back in December Misek also claimed the 5S is coming in June and at the time said he expects Apple to ship the device with multiple colors, improved battery life, and possibly a 4.8″ Retina/IGZO display. However, in today’s note Misek said there has been no additional evidence for the 4.8″ prototype signaling the design could be for the iPhone 6.  Today he also added his thoughts on rumors of a low-cost iPhone, claiming Apple could release a low-cost device made of polycarbonate with no LTE and a 4″ non-retina display.

As for the rumors of less than expected iPhone 5 demand contributing to cuts on component orders, which is also impacting the company’s stock price this week, Misek provided his thoughts:
Expand
Expanding
Close

When Apple originally announced the iPad mini, it said the LTE model would ship two weeks after the Nov. 2 launch date set for the Wi-Fi only models. It didn’t take long for Apple to extend estimated shipping dates to “2 weeks” following selling out of initial supplies. One lucky iPad mini user received their preorder already, but it appears Apple is facing major shortages leading up to the holidays. Especially for the cellular models…

As noted in the tweet below, several readers have noticed Apple has now removed the shipping date for their iPad mini LTE preorders. Previously, Apple provided a shipment date of November 23rd for many who preordered LTE iPad minis on day one. That date was already a week longer than Apple promised during the unveiling. Since providing that date, orders have now been updated to read “mid-November”, indicating Apple could be running into more delays than expected in manufacturing. Whatever the source of the shortage is, it looks like preorder customers might not receive their orders until after the 23rd.
Expand
Expanding
Close