“According to Misek, the main reason for his optimism is his belief that Apple’s gross margin issues will be resolved this quarter,” Rathee reports. “In addition, the analyst says his checks indicate that the current iPhone 5 shortfall has been caused by assembly line issues at Hon Hai Precision Industries, and is thus easily solvable.”
Rathee reports that Hon Hai “idled about 50,000 employees due to component bottlenecks in the last quarter. But with those issues now alleviated, the manufacturer is trying to hire more people to meet the demand and Apple is paying Hon Hai higher amounts to do so.”
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