Analysts See iPhone 4S Supply Constraints Throughout Holiday Quarter

Fortune summarizes a pair of analyst reports out today suggesting that Apple may be experiencing some supply constraints on the iPhone 4S during this holiday quarter. The company has obviously been working hard to demand for the device as shipping estimates through iPhone carrier partners and even Apple itself have at times been lengthy, but beyond high demand the new reports suggest that Apple may be having some trouble meeting its own production goals for the device.

iphone 4s white side
The first report, from Rodman and Renshaw analyst Ashok Kumar, cites shortages of an unidentified "key component" for the iPhone 4S that is holding back production.

In a note entitled "Limited near-term upside for iPhone," Rodman & Renshaw's Ashok Kumar alerted clients that low yields on an unidentified "key component" is likely to constrain production of the iPhone 4S this quarter.

Including an estimated four million iPhone 4S units that were manufactured but not shipped in the prior quarter, Kumar says that Apple could sell 30 million iPhones this quarter, still a healthy number but leaving Apple without the ability to completely satisfy consumer demand.

The second note comes from Susquehanna Financial's Jeff Fidacaro and similarly cites "supply constraints" as the reason behind his reduction in quarterly iPhone sales of about three million units, moving from 26-28 million units to 23-25 million units. He notes that demand appears to remain strong but that Apple is having a hard time producing enough iPhones to meet that demand.

Related Forum: iPhone

Top Rated Comments

SandynJosh Avatar
160 months ago
"Analysts See"

As if these analysts are fortune tellers. There is no such thing as an analyst that "sees" anything. They are literally a group of people that sit around and get paid to make guesses. The pride of America.


I sat in on an analysts meeting once. Here's how it's done. Quite simple really.
Score: 6 Votes (Like | Disagree)
RafaelT Avatar
160 months ago
I think I am going to become an Analyst. It seems all you have to do is make random usually incorrect guesses and you get paid.
Score: 6 Votes (Like | Disagree)
topmounter Avatar
160 months ago
I don't normally do this on a public forum, but let me put on my "analyst" hat for a moment...

My analysis indicates that these supply constraints are indicative of a Q1 launch of the next-gen iPhone. I predict that this model may be called iPhone5, with the "5" referring to the predicted (by me) 5-inch screen size. Please visit my website (and don't forget to click on the ads) for in-depth elaboration and pontification on my cursory analysis.
Score: 4 Votes (Like | Disagree)
anberlinairlift Avatar
160 months ago
"Analysts See"

As if these analysts are fortune tellers. There is no such thing as an analyst that "sees" anything. They are literally a group of people that sit around and get paid to make guesses. The pride of America.
Score: 4 Votes (Like | Disagree)
Peace Avatar
160 months ago
The word "yield" indicates it is either a chip or a display. Display is more likely.

One wonders if supply-demand balance is even possible soon with the release date of international occurring before USA S-D balance occurred and all this overlayed on "black Friday" which is now a week-long season as we have cyber Monday and small business Saturday and whatever else somebody has named to try to juice retail sales.

Overall a pretty good problem to have if you are Apple. Just so long as backlog doesn't float past two weeks for very long at a time. Consumers are not very patient these days. The alternatives while of lesser perceived value are increasingly comparable on a variety of levels.

Rocketman

Makes me wonder if the "constraint on a certain component" isn't manufactured by Samsung.
Score: 3 Votes (Like | Disagree)
ThunderSkunk Avatar
160 months ago
Hey, I'm an analist too!

Er wait, analyst or analist...
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
apple wallet drivers license feature

Apple Said iPhone Driver's Licenses Will Expand to These 8 U.S. States

Monday February 12, 2024 7:51 am PST by
In 2021, Apple introduced a feature that lets residents of participating U.S. states add their driver's license or ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age. Unfortunately, states have been slow to adopt the feature since it was first announced in September 2021, with IDs in the Wallet app only available ...
General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
samsung galaxy ring

'Apple Ring' Allegedly in Development to Rival Samsung Galaxy Ring

Tuesday February 20, 2024 2:27 am PST by
Apple is speeding up development of a smart ring that can be worn on the finger to track users' health biometrics, claims a new report coming out of Korea. Teaser image of Samsung Galaxy Ring shown at Galaxy Unpacked in January Apple has toyed with the idea of a ring wearable for several years, as indicated by several patents, but with Samsung preparing to bring its own product to market, the ...
New Macs iPads iOS 17 4

New Macs and iPads Coming Soon: What to Expect

Saturday February 17, 2024 3:00 am PST by
Following the launch of Apple's Vision Pro headset, attention has shifted towards what is next on the company's agenda this year. As usual, March should be eventful for Apple, as it is expected to release new MacBook Air, iPad Pro, and iPad Air models during the month. In a recent press release, Apple also confirmed that iOS 17.4 will be released in March. Below, we recap what to expect...
volvo s60 drivers apple maps

iOS 17.4 Beta Adds CarPlay Option to Show Upcoming Maneuvers in Instrument Cluster

Tuesday February 20, 2024 10:47 am PST by
The fourth beta of iOS 17.4 that Apple released today adds a new CarPlay feature, according to the notes that Apple provided to developers. In supported CarPlay vehicles, there's now an Apple Maps option to show information about upcoming maneuvers in the instrument cluster. CarPlay users will be able to swap the display type between the main and instrument cluster by tapping on the map...
m3 macbook pro 14 16

Apple Now Selling Refurbished M3 Pro and M3 Max MacBook Pro Models

Monday February 19, 2024 5:04 pm PST by
Apple today began offering refurbished versions of the 14-inch and 16-inch MacBook Pro models with M3 Pro and M3 Max chip options, offering the machines at a discount for the first time since their October 2023 release. The release of M3 Pro and M3 Max models on Apple's refurbished store comes almost two weeks after the entry-level 14-inch M3 MacBook Pro first appeared on the store....