“Apple has begun drawing down build plans for its current iPhone models, as sales begin to ease in anticipation of a new sixth-generation model expected to launch later this year,” Neil Hughes reports for AppleInsider.
“Analyst Shaw Wu with Sterne Agee said in a note to investors on Tuesday that he has found in his checks with suppliers that Apple has reduced iPhone orders by between 20 and 25 percent from the 35.1 million units the company shipped in the March quarter,” Hughes reports. “‘From our understanding, the reason for the reduction is not demand related but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe,’ Wu wrote. ‘It appears AAPL is opting to be conservative with its suppliers to factor in a potential 2-quarter pause ahead of the refresh and also to manage inventory.'”
Hughes reports, “Wu noted that Wall Street consensus last year ‘grossly underestimated the impact of a pause and inventory drawdown ahead of the iPhone 4S.’ He believes investor expectations should be drawn in for the June quarter as well as the following September quarter. But while he doesn’t expect a significant upside for iPhone sales in the coming quarters, Wu does believe the iPad has the potential to impress investors. Specifically, he has heard that Apple has increased build plans for its third-generation tablet.”
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