Merrill Lynch: Hon Hai may produce fewer next-gen iPhone’s than expected in the coming months

“A new report out of Taipei today reports that Bank of America Merrill Lynch stated on Wednesday that Taiwan’s Hon Hai Precision Industry Co. may produce fewer units of Apple Inc.’s next-generation iPhone than expected in the coming months because of supply constraints faced by the device’s display,” Jack Purcher reports for Patently Apple.

“Merrill Lynch stated in its latest research note that ‘Hon Hai, which assembles iPhones and iPads for Apple, is expected to ship 5 million to 10 million iPhone 5s in the third quarter and 30 million to 40 million units in the fourth quarter,'” Purcher reports. “Some estimates for the highly anticipated phone have even reached 20 million units for the third quarter and 50 million to 60 million units for the fourth quarter, which Merrill Lynch saw as being too optimistic.”

Apparently, analyst Robert Cheng sees an issue in ramping in-cell display panels which he calls “by far the most critical component for the iPhone launch.”

Read more in the full article here.


  1. Here we go again. The stock was pumped up so that the brokers could cash in. Now it’s time to spread FUD to drop it down again.
    What a surprise – rumors about a rumored component for a rumored product.

  2. When Merrill reports positively about Apple, apple fans pounce on it to drive the stock higher. When they state something not positive about Apple, apple fans curse them. Hm, sounds like these “fans” are really shareholders. That amounts to sweet nothing.

  3. This is expected.
    Apple guge growth is mainly due to Asian sales.
    With Asian telco setting 2 years contracts most prudent Asian will not break the contracts specially with hem
    Purchasing Samsung galaxy S 3 .

    Apple crush Android NOW !!

  4. while i think that Apple’s iPhone 5 will break all sales records, it comes down to how many of them that they”ll actually be able to deliver. I think that’s the point here, that the in-cell displays could hold final back sales to end users. It comes down to the supply of this new type of display.

  5. The write up by this Merrill Lynch stooge makes no sense because if apple is going to start selling a new iPhone and a 7″ iPod Touch next month in the millions the manufacture of said units has already started, which means all of the material to build them has been delivered months ago, there is no shortage, the trains are running on time.

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