iPhone 5 production improving, analyst says

Credit: Apple

In a note to investors on Tuesday, Sterne Agee analyst Shaw Wu wrote that Apple’s main concern now is the production of the device itself as the handset is “not easy to build.”

“AAPL has very high standards where it aims to produce each model to be an exact replica where variance is measured in microns,” Wu said, as cited by AppleInsider.

The analyst estimates that 27 million iPhones were sold in the recently-ended September quarter.

As for the December quarter, he expects Apple to sell a record 46.5 million iPhones with “room for upside.”

Wu said that problems regarding the production of the device should be viewed as short-term issues.

The in-cell touch panels and the integration of 4G LTE wireless capability into a 28-nanometer fabrication process are listed as some of the main difficulties that interfered with the production schedule.

Stern Agee has maintained a buy rating for Apple stock with an $840 price target.