toggle

AAPL Stock: 111.78 ( -0.87 )

Printed from http://www.macnn.com

Analyst backs lower iPhone production numbers

updated 10:30 am EST, Wed November 5, 2008

UBS on iPhone production

Apple is indeed producing far fewer iPhones than it was earlier this year, writes UBS analyst Maynard Um. Echoing statements from Friedman Billings Ramsey, Um notes that checks with the supply chain indicate that iPhone levels are down by 1.7 million to 2.3 million. Total production for the December quarter could amount to just 4 million, which is below UBS estimates of 5 million and September-quarter production of 9 million. Um says his firm is keeping to estimates, however, and will monitor for any changes.

The analyst meanwhile notes that Apple's selling, general and administrative (SG&A) expenses for each phone are in line with the company's rivals. This is said to be an impressive feat, as companies like Palm and Research in Motion are known to have had much higher expenses early into their product cycles.

GAAP revenue and EPS estimates for FY09 are unchanged, amounting to $36.7 billion and $5.13, respectively. A drop of 1 million iPhones would hit EPS by 5 cents though, and UBS is holding to a $115 price target based on global economic problems.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. Constable Odo

    Joined: Dec 1969

    0

    Unrealistic analyst

    goals for Apple. When Steve Jobs said that he wanted to get 1% of the handset market, people laughed and said it wasn't likely and if Apple did it would be a tremendous feat. So far, Apple has gotten 2%. Apple has continued to exceed expectations by beating the smartphone competition at it's own game.

    But the analysts are still not satisfied although Apple is doing better than most companies. Is it unusual for a company to slow down production so you don't get a glut of inventory? How can any company sustain sales in a weak economy. Shouldn't there be some lowered expectations but relative based on other companies sales. As long as the Apple is outpacing the rest of the industry that should be taken into consideration.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lackin ...

toggle

Most Commented