Suppliers in the Far East appear to be gearing up for Apple’s next-gen iPhone and are reportedly anticipating 20% growth from last year’s iPhone 5S launch, setting the stage for the biggest iPhone debut yet. Analyst Katy Huberty of Morgan Stanley recently took a trip to visit technology industry component suppliers who shared their expectations for Apple’s next iPhone. From these conversations, Huberty said in a note to investors that she sees no major bottleneck for “iPhone 6” components, suggesting that Apple and its suppliers may not have a difficult time keeping up with demand.
The Cupertino California company doesn’t break down iPhone sales by model, so it’s unknown exactly how well the iPhone 5S sold at launch compared to the iPhone 5 a year prior. However, total iPhone sales in the December 2013 quarter were up just 6.7% year over year, which was a much slower growth rate than the company had previously seen. The indications from suppliers suggest that Apple’s next iPhone, which is rumored to come with a larger display could reignite sales growth.
Huberty expects that the next iPhone could have a bill of materials roughly $20 to $30 higher than the current iPhone 5S, largely due to the expectation of a larger display and improved camera. She wrote the following regarding the matter:
However, we don't detect any abnormal component pricing pressure from Apple suggesting lower inventory, deprecation, and warranty costs along with the potential for a modest price increase and/or NAND mix change may help digest the higher (bill of materials).
We’ll have to wait and see how things go.
Source: Morgan Stanley via AppleInsider