Apple: Last Year's iPhone 7 May Offset iPhone X Delays, Slack '8′ Demand, Says Mizuho

Apple: Last Year's iPhone 7 May Offset iPhone X Delays, Slack '8′ Demand, Says Mizuho

If it’s Wednesday, which it is, it must be time for another report on potential Apple (AAPL) iPhone X  delays.

This morning’s missive comes curtesy of MIzuho‘s Abhey Lamba, who writes that his associates in Asia-Pacific are lowering their estimate for production of the X, which is slated to go on sale on October 27th.

Lamba, who has a Neutral rating on Apple shares, and a $150 price target, alludes to reports of delays such as one by DigiTimeson Monday, writing that there are “recent concerns around the iPhone X ramp.” A report yesterday from Nikkei Asian Review related problems with Apple’s “TrueDepth” camera on the front of the device, which was followed by a Wall Street Journalreport today describing similar problems.

“The Japan team lower their iPhone X production for CY17 by just under 20% to 38mm units relative to their July forecast,” details Lamba.

“We also note that recent media reports suggest that Apple has informed component suppliers to slow down shipments until the company gets more demand visibility.”

Lamba notes that Apple’s outlook for the December-ending fiscal Q1 may be “pressured” by both the delay in iPhone X, and also lower demand for the iPhone 8, which is already on sale. He notes that  ” initial iPhone 8/8+ commentary (and shipping estimates) indicate that pre-order activity is well below the year-ago period when the 7/7+ launched.”

Interestingly, Lamba concludes from his Asia-Pacific associates that the discounted iPhone 7  and 7 Plus, last year’s models, are going to see increased demand, offsetting the slack iPhone 8 demand.

“As an offset, the team raised its 4.7″ and 5.5″ LCD model forecasts by 9% and 3%, respectively, with better uptake of older 7/7+ SKUs on the back of price reductions,” he writes.

Apple shares today are up $1.03, or 0.7%, at $154.17.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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