iPhone 4S Slowdown Ahead of “iPhone 5” is Smaller Than Expected

iPhone 4S Slowdown Ahead of “iPhone 5” is Smaller Than Expected

Suppliers are said to be less concerned about Apple reducing production of the iPhone 4S ahead of a new iPhone model, as sales of the 2011 model smartphone are remaining strong.


Analyst Brian White with Topeka Capital Markets met with suppliers this week during a trip to the Computex trade show in Taipei, Taiwan. He said he did not sense much concern from those suppliers regarding the ramp down of iPhone 4S production ahead of a next-generation iPhone launch.

“In fact, the overall tone was a bit better than we expected and one company even seemed to be experiencing upside from this program in (the second quarter of 2012),” White wrote in a note to investors on Friday.

He has stuck by his projection of 30.9 million iPhones sold in the June quarter, which would present a decline of 12 percent. White says his discussions with suppliers has convinced him to hold on to his initial projection, even as other Wall Street analysts are trimming theirs. For example, Robert Cihra with Evercore Partners said this week that he has lowered his June quarter iPhone estimate to 28.8 million units, a drop from his previous prediction of 31 million.

Chira also has said he cannot pin down when Apple’s next iPhone will launch. But, he does consider a September launch to be “more likely than most.”

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