Apple iPhone 5 Doomsday Is A Myth


Apple’s time has not yet come, nor do iPhone 5 sales show any sign of subsiding, says Yahoo News.

With the rising popularity of Android due to price and the availability of many applications that iPhone users enjoy, Apple’s flagship phone series would appear to be looking for the exit. However, similar to Nintendo, Apple maintains a loyal fan base that refuses to part ways, among other things.

Topeka Capital Markets analyst Brian White suggested that investors “rise above the iPhone 5 cuts and just buy Apple [stock].”

Tuesday, White acknowledged that there have been cuts recently made to Apple‘s supply chain, but popular rumor has the reasons all wrong. The demand hasn’t abated. The supply just can’t meet the demand.

Apple’s partners are having trouble producing enough components, and, as a result, orders have been cut from other suppliers, according to BGR.

White puts it bluntly:

“We believe the doomsday scenarios painted over the past week are inaccurate.”

Beginning a couple of weeks ago for the month of December, the supply chain has been cut for certain suppliers, no doubt due to the Christmas rush of everybody wanting the latest Apple technology.

As such, they remain hopeful with iPhone 5 and iPhone 4S forecasts for the December and March quarters, which appear to be on the slow side but persistent. Apple’s iPhone 4 is still in demand due to discounts in these tough economic times.

With the money being more limited than ever, who wouldn’t jump at the possibility of owning the second-last generation for a smaller dent in their wallet?

Brian White adds:

“For example, the iPhone 4S was already in 70 countries in the first 63 days of the launch last year versus our estimate of 47 countries for the iPhone 5 over a similar time frame this year. With the addition of over 34 countries for the iPhone 5 by December 14 and another 20 countries to be added on December 21, Apple is on track to reach 101 countries during the first 91 days of the iPhone 5, better than the 92 countries for the iPhone 4S over a similar time frame. That said, the slower pace of the ramp in the initial two months is driving lower volumes versus Apple’s original expectations (but not our expectations), which is in-line with our thoughts during our October Asia trip.”

White maintained, his Buy rating on Apple shares with a 12-month price target of $1,111.

Doomsday broadcasters can rest assured that Apple isn’t going anywhere.

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