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iPhone 5 Supply Issues May Hurt Apple's Quarterly Results

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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  • spartanmk2
    Theyre still going to make an outrageous profit...
    Reply
  • fazers_on_stun
    Guess dumping Samsung wasn't such a good idea, eh??

    :P
    Reply
  • deadlockedworld
    fazers_on_stunGuess dumping Samsung wasn't such a good idea, eh??
    Has nothing to do with Samsung. It's all Foxxconn.
    Reply
  • game junky
    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
    Reply
  • willard
    deadlockedworldHas nothing to do with Samsung. It's all Foxxconn.Might want to read the article first.
    "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.
    Reply
  • willard
    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 sideSimple 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.
    Reply
  • rantoc
    Aww did they lost supply when Foxconn was busted abusing underage workers, what a pitty /end sarcasm.
    Reply
  • ivanto
    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.
    Reply
  • house70
    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?
    Reply
  • tuffjuff
    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.
    Reply