Sales of Apple Inc.(NASDAQ:AAPL)’s iPhone 5 will be lower than expected in the quarter to September due to supply constraints, but sales will pick up in the December quarter and beyond and there are enough reasons to be bullish about Apple.
This is what Piper Jaffray's analyst Gene Munster said on Thursday, has he reduced his forecast for the quarter just ended.
Munster has been a strong champion of Apple for a long while now and the Street recognises him as such. He cut his forecast for the quarter to 25 million units from the original forecast of 27.2 million.
However that reduction is a function of supply and not of demand, which is expected to remain robust.
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“We believe that the bigger story for Apple will be the December quarter and when the company is able to meet demand for iPhone 5,” he wrote.
“Based on our checks for in-store pickup at 100 U.S. Apple retail locations over the past week, we believe supply remains extremely limited. While we are maintaining our 49 million iPhone estimate for December based on demand, if supply were to remain constrained for more than the next 3-4 weeks it may cause us to shift some December units into March.”
Talks of supply constraints for the iPhone 5 have been around a while now, chiefly due to some of its components suppliers not being able to deliver on schedule.
Munster retained his Overweight rating on the stock as well as the price of $910 a share.
Shares of AAPL fell 1.40% to $657.66 in Friday’s session after hitting an all time high of $705.07 recently.