iPhone 5 Supply Issues May Hurt Apple's Quarterly Results
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.

Has nothing to do with Samsung. It's all Foxxconn.
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
Might want to read the article first.
Foxconn is the key problem, but it's being exacerbated by Apple's decision to move away from Samsung.
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.
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.
What's next? Underage workers strike?
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.
Why dont you ask Foxconn? It's their workers.
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.
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
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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
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This could cost Apple more than the billion dollars they want from Samsung, should have just played nicely instead of being Nazis
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
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
I meant their politics, not the whole gas-chamber bit
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)
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!