Analyst: Improved iPhone 5 production yields to inflate Apple’s margins

“Shaw Wu of Sterne Agee checked with members of Apple’s overseas supply chain, and was told that yields on the iPhone 5 are still improving,” Neil Hughes reports for AppleInsider. “The progress comes as estimated shipping times from Apple’s online store have improved to between two and four days, while the handset is set to launch in more than 50 countries this month.”

“Availability of the iPhone 5 is improving despite what Wu referred to as ‘robust demand’ for the device,” Hughes reports. “He expects Apple will sell 47.3 million units in the December quarter, a forecast slightly greater than market consensus of between 45 million and 46 million iPhones sold during the holiday quarter.”

Hughes reports, “Word of improved production of the iPhone 5 also prompted Wu to increase his gross margin forecast for Apple’s current quarter. He now believes Apple will achieve margins of 38.5 percent during the three-month frame, up from a previous prediction of 38 percent.”

Read more in the full article here.

5 Comments

    1. coz Wall Street anal yst are using cheap android phones, either free
      or buy one get one free. market shares are better than profit shares
      for those Wall Street as***les

  1. This happens with all new Apple devices. They are so cutting-edge state of the art that initial yields are a low, but they learn fast. Production quantities ramp-up quickly, and they can sell all they can make.

  2. S.O.P. for Apple

    Doom and gloom at first as yields are low, than euphoria as they come up on the learning curve, yields are up, and production quantities ramp up.

    Nothing new here, this is the way of life for state of the art cutting edge technology.

  3. @tomL: This is actually pretty standard in ALL manufacturing. The more you make, the better you get at making them.

    Apple starts production and admits that the margins will be a little lower than usual, knowing as they produce more, they’ll get better at it and margins will rise. Meanwhile the financial analcysts are all gloom and doom. They are incapable of learning.

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