Susquehanna

Last month, in a research note with TF International Securities, analyst Ming-Chi Kuo said he expects four high-end iPhones with 5G support to launch in the second half of 2020, including both sub-6GHz and sub-6GHz-and-mmWave models. Kuo said iPhone models with mmWave would be available in five markets, including the United States, Canada, Japan, Korea, and the United Kingdom, adding that Apple may disable 5G functionality in countries that do not offer 5G service or have a shallow 5G penetration rate to reduce production costs. Based on checks within Apple's supply chain, however, Susquehanna analyst Mehdi Hosseini disagrees with Kuo's timeframe. Instead, he expects 5G-enabled iPhones to launch in two phases, including sub-6GHz models in September 2020 and mmWave models in December 2020 or January 2021. The allegedly delayed launch of mmWave models stems from Apple's decision to use its own antenna-in-package modules instead of relying on a third-party supplier, said Hosseini, according to StreetInsider. mmWave is the fastest 5G, utilizing new spectrum to provide theoretical download speeds of over 1 Gbps. Sub-6GHz is slower than mmWave, but it is still faster than 4G LTE and has broader coverage that makes it more suitable for rural areas. Hosseini also expects one of the 5G-enabled iPhones to have an LCD, whereas Kuo said all four models would ship with OLED displays. One 5.4-inch model, two 6.1-inch models, and one 6.7-inch model are expected. Kuo has a more established track record than Hosseini, so Apple's exact roadmap remains to be

Based on supply chain analysis following a trip to Asia, Susquehanna Financial Group analyst Christopher Rolland (via Barron's) believes Apple's third-generation Apple Watch may introduce cellular connectivity, a feature that's been long rumored for the device. Specifically, Rolland suggests the 2017 Apple Watch will include a SIM card for LTE connectivity and that the next-generation device will be promoted alongside the AirPods. We understand a model of the next Apple watch will include a SIM card, and therefore is likely to support LTE. We understand some issues remain, including battery life and form factor size, but significant progress has been made. Apple may be employing VOIP and data across a CAT-M1 connection for superior battery life. Apple will tout interoperability with the company's AirPods (now on back order till May) to make and receive phone calls (perhaps a small win for Maxim with amps in each ear bud). Positive QCOM, MXIM.Apple has likely been working to add a cellular modem to the Apple Watch for several years, but has been unable to do so due to excessive battery drain. In early 2016, rumors suggested the second-generation Apple Watch would include cellular connectivity, but that didn't pan out. Mid-2016 rumors indicated Apple was researching low-power cellular chips for future versions of the Apple Watch, but was unable to make it work for the second-generation device, so the technology could potentially be ready for inclusion in a 2017 Apple Watch. The addition of standalone cellular connectivity would further untether the Apple Watch

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. 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

Earlier today, a report from JPMorgan analysts made headlines for its claim that Apple has slashed its fourth quarter iPad production plans by 25%, sparking speculation and rumors that Apple may be planning a price cut amid weakening demand. The Wall Street Journal notes, however, that several analysts have already spoken out against the conclusion, arguing that a single supply chain data point is insufficient to warrant such drastic production cut predictions. From Piper Jaffray analyst Gene Munster:We also note that previous calls based on sell-in or supply chain data have, for the most part, proven to have very little correlation with Apple’s results vs. consensus dating back to early iPod shipments (2003). We believe Apple purposely maintains enough suppliers and manufacturing partners to make any one supply-side data point inconclusive.Analysts also note that Apple appears to have actually accelerated production and bumped up third quarter orders to stockpile iPads heading into the holiday shopping season. Sources also indicate that Apple is likely to begin production of the iPad 3 at the end of the fourth quarter or early in 2012 and may be accelerating production now in order to ease that transition. Apple struggled with the transition from iPad to iPad 2 production earlier this year, with weak sales coming in the first quarter of this year as Apple scaled down production of the original iPad and was unable to meet heavy initial demand for the iPad 2. From Susquehanna analyst Chris Caso:We believe chatter regarding iPad production cuts are misleading –