Production orders for the iPhone 4S have dipped markedly, according to a new report that is raising questions about how soon the 6th generation iPhone will be introduced to the public.
On Tuesday, analyst Shaw Wu told investors that his supply-chain sources confirm that Apple has dramatically cut iPhone 4S orders by as much as 25% in some instances That's a big dip when you consider that 35.1 million units were shipped just during this past March quarter.
Sterne Agee’s Shaw Wu this morning reiterates a Buy rating on shares of Apple (AAPL) and a $780 price target, while cutting his projection for the company’s iPhone unit sales this quarter and next, as he believes Apple is reducing production before refreshing the phone with what a “sixth generation” unit.
"From our understanding, the reason for the reduction is not demand related but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe," Wu says. "It appears AAPL is opting to be conservative with its suppliers to factor in a potential 2-quarter pause ahead of the refresh and also to manage inventory."