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iPhone 5 Supply Issues May Hurt Apple's Quarterly Results

By - Source: CNET | B 19 comments

Several analysts lower fourth-quarter financial results for Apple, who will reveal earnings on October 25.

Several analysts have suggested that the iPhone 5's supply constraints could negatively impact Apple's quarterly earnings, with the world's most valuable company (and the world's largest hedge fund) due to unveil its fiscal fourth-quarter report next week.

Ever since Apple announced the smartphone on September 12 and then shipped it on September 21, countless reports relating to supply shortages for particular iPhone components have emerged.

Finance firm William Blair said customers have faced "significant delays" for the iPhone 5 since its launch last month. Consequently, the company has reduced its sales estimate for the iPhone for the September and December quarters. It now expects the iPhone lineup to sell 26.5 million units during the fiscal fourth quarter, representing a decrease from its previous expectation of 33 million.

For the fiscal first quarter ending in December, William Blair said it expects shipments to reach 45 million, which is down 1 million from initial predictions.

"Apple's inability to keep up with demand is being amplified by its aggressive global launch schedule and the company reducing its exposure to its traditional partner, Samsung," William Blair analyst Anil Doradla stated.

Morgan Stanley analyst Katy Huberty added that the iPhone's commercial performance depends on several outcomes such as timing of shipments and the purported delay of its display production being "major swing factors." She estimates that 25 million iPhones will be sold during the quarter.

Huberty also said she expects Apple's commercial results for the current quarter to be weaker than analysts expect due to iPhone 5 supply constraints, as well as the limited visibility pertaining to iPad Mini shipments.

Two days after it'll reportedly reveal the iPad Mini and a 13-inch MacBook Pro, Apple will report its fourth-quarter results following the stock market closing on October 25.

 

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  • 8 Hide
    spartanmk2 , October 18, 2012 3:44 PM
    Theyre still going to make an outrageous profit...
  • 7 Hide
    fazers_on_stun , October 18, 2012 3:49 PM
    Guess dumping Samsung wasn't such a good idea, eh??

    :p 
  • -6 Hide
    deadlockedworld , October 18, 2012 4:06 PM
    fazers_on_stunGuess dumping Samsung wasn't such a good idea, eh??


    Has nothing to do with Samsung. It's all Foxxconn.
  • 0 Hide
    game junky , October 18, 2012 4:18 PM
    Sure it will...sure it will. Apple is a money making juggernaut, I don't think anyone is going to cry over their profit margin or sales figures.

    Wish they had tiered brands like BR/Gap/Old Navy so I could get their good looking gadgets for a little less money. I can't believe how much I have given them over the years for iPods and iPhones. It's a little on the depressing side
  • 6 Hide
    willard , October 18, 2012 4:18 PM
    deadlockedworldHas nothing to do with Samsung. It's all Foxxconn.

    Might want to read the article first.
    Quote:
    "Apple's inability to keep up with demand is being amplified by its aggressive global launch schedule and the company reducing its exposure to its traditional partner, Samsung," William Blair analyst Anil Doradla stated.

    Foxconn is the key problem, but it's being exacerbated by Apple's decision to move away from Samsung.
  • 7 Hide
    willard , October 18, 2012 4:26 PM
    game junkySure it will...sure it will. Apple is a money making juggernaut, I don't think anyone is going to cry over their profit margin or sales figures.Wish they had tiered brands like BR/Gap/Old Navy so I could get their good looking gadgets for a little less money. I can't believe how much I have given them over the years for iPods and iPhones. It's a little on the depressing side

    Simple solution, stop buying overpriced products. Android phones aren't the inferior monstrosities fanboys would have you believe.

    You have a choice, exercise it if you aren't happy.
  • 3 Hide
    rantoc , October 18, 2012 4:26 PM
    Aww did they lost supply when Foxconn was busted abusing underage workers, what a pitty /end sarcasm.
  • -5 Hide
    ivanto , October 18, 2012 4:44 PM
    rantocAww did they lost supply when Foxconn was busted abusing underage workers, what a pitty /end sarcasm.


    Side by side price comparison here in Canada -
    Carrier Rogers -
    URL - http://www.rogers.com/web/link/wirelessBuyFlow?forwardTo=PhoneThenPlan&productType=normal

    Phone: Samsung GS3 vs iPhone 5
    Price 3y contract : $159.99 vs $179.00
    Subsidy: $440 vs $520

    $20 dollar difference us not "overpriced".
    iPhone subsidized by extra $80.
    Numbers say that Samsung Galaxy S3 is overpriced.
  • 1 Hide
    house70 , October 18, 2012 4:45 PM
    Between the workers strike and the underage workers scandal (both denied first, then acknowledged) I would say they might have a problem...
    What's next? Underage workers strike?
  • -3 Hide
    tuffjuff , October 18, 2012 5:40 PM
    willardSimple solution, stop buying overpriced products. Android phones aren't the inferior monstrosities fanboys would have you believe.You have a choice, exercise it if you aren't happy.


    They can be pretty inferior, is the problem.

    And his post was more of a comment. He has a choice and he's made it, clearly.
  • -3 Hide
    tuffjuff , October 18, 2012 5:42 PM
    house70Between the workers strike and the underage workers scandal (both denied first, then acknowledged) I would say they might have a problem...What's next? Underage workers strike?


    Why dont you ask Foxconn? It's their workers.
  • 3 Hide
    NightLight , October 18, 2012 7:21 PM
    i hope it comes to about 1 billion :p 
  • 0 Hide
    Vladislaus , October 18, 2012 8:41 PM
    ivantoSide by side price comparison here in Canada -Carrier Rogers - URL - http://www.rogers.com/web/link/wir [...] ype=normalPhone: Samsung GS3 vs iPhone 5 Price 3y contract : $159.99 vs $179.00 Subsidy: $440 vs $520 $20 dollar difference us not "overpriced".iPhone subsidized by extra $80. Numbers say that Samsung Galaxy S3 is overpriced.

    Prices practiced by carriers have nothing to do with the price practiced by the phone maker. If you want to compare prices then you have to take a look at the prices of sim unlocked phones.
  • 1 Hide
    back_by_demand , October 18, 2012 9:18 PM
    deadlockedworldHas nothing to do with Samsung. It's all Foxxconn.

    Foxconn only assemble, they do not produce the parts, as they moved away from reliable high volume suppliers they have cut their noses off to spite their face
    ...
    Without the parts from Samsung (and others) the alternate vendors simply cannot keep up with demand and Apple sales suffer as a result, Apple is finally starting to realise that they aren't the only game in town and you need to work with your suppliers not against them - and if they post lower sales figures than expected it will hit share price as a result
    ...
    This could cost Apple more than the billion dollars they want from Samsung, should have just played nicely instead of being Nazis
  • 0 Hide
    echondo , October 18, 2012 11:13 PM
    back_by_demandNazis


    Seems a bit excessive to compare them to Nazis...I would just say they are arrogant...I do agree with you but Nazi wouldn't have been my chosen word :p 


    OT: This is wonderful news! Hopefully Apple just blames it on Foxconn and just moves away from them!

    I am predicting Apple will be in a loss by 2014 and be bankrupt by 2016! Then Samsung buys them out :p 
  • 0 Hide
    back_by_demand , October 18, 2012 11:42 PM
    echondoSeems a bit excessive to compare them to Nazis

    I meant their politics, not the whole gas-chamber bit
  • -1 Hide
    nieur , October 19, 2012 4:32 AM
    I don't understand how the market capital of company of which has most of their profit from very few products(on top of that they are consumer products) is over $600 billion.
    I mean let us say as the craze about iphone/ipad goes down(which is very much possible) in few years
    their profit will drastically come down followed by reduction in share value. Then people who have bought the shares dreaming about that '$1000' price per share how much loss they will be in

    so my question is why is the share price/market value of Apple is so high considering above threats?

    (Correct me if I am wrong)
  • -1 Hide
    rantoc , October 19, 2012 8:14 AM
    nieurI don't understand how the market capital of company of which has most of their profit from very few products(on top of that they are consumer products) is over $600 billion.I mean let us say as the craze about iphone/ipad goes down(which is very much possible) in few years their profit will drastically come down followed by reduction in share value. Then people who have bought the shares dreaming about that '$1000' price per share how much loss they will be inso my question is why is the share price/market value of Apple is so high considering above threats?(Correct me if I am wrong)


    I think apple's next record that will reach front pages everywhere will be the drop in share value, its today a company with tons of 'air' value since the future is not that certain but as long as people keep investing in the company shares the value rises and more invest since the trend point upwards. When the trend then will start move downward people will realise how overvalued the stock have been and panic sell, it will be a share value drop of epic proportions once the bubble start to burst!
  • 0 Hide
    shovenose2 , November 6, 2012 2:05 AM
    Zophone i5 :)  looks like an iPhone 5, but better and cheaper. I wish I could get one!