In a move which may well be reported as an Android dents Apple story but which (to my mind, at least) reflects a later-than-anticipated introduction of CDMA iPhones on compatible networks in China and India, analysts this morning claim Apple has “revised downward” its orders for iPhone production in the current quarter. Bear in mind, of course, that this could be perfectly normal as the company swabs the decks for introduction of new iPhone models in June, though this is not not expected….
Anyway, from the report:
“2Q iPhone build estimates revised downward on weak CDMA sell through. For the iPhone, FBR’s contacts suggest calendar 2Q11 iPhone production has been revised downward since their last checks by 16% to 20.1M units. The majority of this negative revision was due to lower CDMAbased iPhone production, which was reduced from 5.0M builds to 2.1M builds. This negative -58% revision was on the back of lower than expected CDMA sell through at Verizon where they hear Apple faces steep competition in the CDMA-based smartphone market from Samsung and HTC — both firms that address many price points from smart-feature phones to smartphones. Net, they now see 43M iPhones built in 1H11, suggesting Apple will build closer to 90M iPhones this year, down from their previous estimate of 100M-105M iPhones in 2011. Given the channel build and production estimates for 2Q, they estimate Apple could sell as many as 21M iPhones in the second quarter (below FBR’s previous maximum of 25M units) before inventory levels reach hand to mouth.”
True or false? Who knows.
Some other snippets on the iPhone 5 also included in the report:
“Qualcomm is replacing Intel as the baseband supplier, selling an integrated CDMA/WCDMA baseband that allows Apple to streamline production. The iPhone 5 will also use an 8MP camera with OmniVision’s CMOS sensors, with Sony possibly being a backup image sensor supplier in 2012.”
(Graphic above shows Apple’s making the money)