“Despite well-publicized concerns with Apple’s new iPhone 5 Maps app, we have not picked up changes in supply-chain build plans,” Shaw Wu, AAPL analyst at Sterne, Agee & Leach, writes for Barron’s. “Demand appears robust with its online store quoting a lead time of three to four weeks.”
“In addition, we are seeing improving yields on in-cell touch screens meaning it is becoming less of a constraint,” Wu reports. “Instead, what appears to be limiting production is assembly of the iPhone 5 itself as it is not easy to build being a minimalist design using only aluminum and glass in its casing. We view these as short-term issues and continue to see a powerful product cycle.”
Wu writes, “Apple has very high standards where it aims to produce each model to be an exact replica where variance is measured in microns. At this point, we remain comfortable with our forecasts looking for 27 million iPhones in the September quarter and 46.5 million units in the December quarter but believe there is room for upside. On a related matter, we believe Apple made the right decision in addressing its Maps-gate issue head-on… Because Apple Maps is software-based, we have high confidence that it will become more powerful and refined as more mapping and user data are acquired.”
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MacDailyNews Take: As we wrote on September 21st, “Bathe in the luxurious FUD while you can for this, too, shall pass.” Bath time is pretty much over.