Shares in Apple Inc.(NASDAQ:AAPL) fell about 1.70 percent on Thursday after BMO Capital Markets reduced the price target of its shares citing supply constraints of its iPhone 5.
BMO analyst Keith Bachman slashed his forecasts for the sales of the iPhone in the December quarter by 4 million nits to 46 million.
The equities research firm also expects the iPhone and iPad maker to provide a modest forecast for the December quarter as supply constraints were bound to hi the sales of its iPhone 5.
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Apple had started selling the new iPhone 5 on September 21 and within three days of opening sales, it had already sold 5 million units. Demand exceeded supply and the company was forced to hold over shipments against pre-orders to October.
Despite the problems with its mapping software (which replaces Google Maps) and other niggling issues with its new operating system iOS6, people are still eager to possess the new iPhone.
In size the latest version of the iPhone is larger than its predecessors and is also thinner, lighter and faster and is also equipped with LTE technology that supports 4G networks.
The device is already available in the US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK, and will be available in 22 more countries on September 28 and more than 100 countries by the end of the year.
Apple is also set to unveil a new smaller and cheaper iPad which will have smaller screen display compared to the regular ones available in the market.
Shares in the company were trading down more than 1.70 percent at $634.