Must Read Rumors

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Kate Middleton and Prince William co-host BBC Radio 1 chart show
Kate Middleton, Prince William and Prince Harry share candid conversation about their struggles in new video
Kate Middleton proud of “brilliant” Prince Harry after opening up about Princess Diana’s death
Kate Middleton admits motherhood can be “lonely”
Meghan Markle shuts down lifestyle blog The Tig

iPhone 5 rumors: Apple cuts down iPhone production ahead of refresh, analyst says

by Nicole
May 15, 2012 at 11:57 am

Apple’s sixth-generation iPhone is expected to arrive in the fall, following the same schedule as the iPhone 4S which arrived in October last year.

Sterne Agee analyst Shaw Wu estimates that Cupertino is cutting down production on its current iPhone in anticipation of its next flagship device, AppleInsider reports.

The company has reportedly reduced production by 20% to 25% from the 35.1 million units shipped last quarter.

The analyst believes that the reduction isn’t explained by consumer demand “but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe.”

“It appears that Apple is opting to be conservative with its suppliers to factor in a potential two-quarter pause ahead of the refresh and also to manage inventory,” Wu writes.

“We believe this helps explain why its June quarter guidance was somewhat more conservative. We would also like to note that consensus last year grossly underestimated the impact of a pause and inventory drawdown ahead of the iPhone 4S refresh where estimates were significantly off.”

Wu estimates that Apple will ship between 26 million to 28 million units, below analyst expectations that were closer to 30 to 31 million.

As for the iPad, the analyst raised his estimate from 14 million units up to 15 million, which is above consensus.

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