Recent reports have been spreading that Apple Inc. is cutting down its supply chain on iPhone 5 components due to a weaker demand. However, current results are showing that the Apple’s newest gadget remains to be in high demand.
An analyst for Sterne Agee, Shaw Wu, has just recently sent a note to investors telling that his suppliers and checks have proven that the sixth generation smartphone’s demands are not slipping hard, so there’s nothing to worry about. Wu and other colleagues believe that this should not raise any apprehensions to the company itself, the market, and to the supporting fans of iPhone.
Analyst from JPMorgan Chase & Co. Mark Moskowitz has speculated that such reports just make investors to overreact.
Furthermore, analysts explained that the reduced orders of Apple are in fact a result of improved yields, which on the other hand results to more component supplies. Additionally, the supplier shift changes also affected the need for the company to bring in more components.
The cutbacks may have stimulated concerns for investors of the tech giant. But experts say that the real concern really came from its biggest rival in the tech world, Samsung.