Sterne Agee analyst Shaw Wu wrote in a note to investors on Thursday that his checks of Apple’s supply chain had proved that the company improved its production of the iPhone 5 since the device’s launch in September.
The analyst also predicts that Apple will sell 46.5 million iPhones in the current quarter, an improvement from the 26 million iPhones shipped in the previous quarter.
Apple’s iPhone 5 constraint issues were due to problems in the manufacturing process.
“Recent press reports quote Hon Hai Chairman Terry Gou commenting that the company is having a hard time keeping up with robust demand as the iPhone 5 isn’t easy to build due to Apple’s high quality standards,” Wu wrote. “This is consistent with our previous comments that the supply chain bottleneck has moved from components to the assembly itself. However, we continue to pick up much improved capacity in our supply chain work and remain comfortable with our 46.5 million total iPhones for the December quarter.”
Foxconn CEO Terry Gou recently acknowledged the difficulties in assembling enough devices to keep up with Apple’s requirements.
“The lower than desired yields is due to AAPL’s very high standards where it aims to produce each model to be an exact replica where variance is measured in microns,” Wu commented.