Despite supply cuts, Wedge increases iPhone sales predictions

Although the Wall Street Journal released a report earlier this week stating that Apple cut orders for components for the iPhone 5, Wedge Partners analyst Brian Blair sees this as no problem at all.

Blair today stated that reports stating the 50% supply cut from Apple was due to weak demand for the iPhone was “simply erroneous.” Blair states that the cuts for screens for the iPhone, iPod, iPad, and even MacBook were due to the fact that Apple ordered aggressively due to low supply before the holiday season, and that cuts around this type of year. Blair states:

We see these cuts as primarily related to normal seasonal patterns coming off of the holiday period and believe they are within a normal 15-25% range, not the 50% range that was reported over the weekend.

Although many took these cuts as a sign that the iPhone was not selling well, Blair still believes that the iPhone will 50 million units in the previous quarter, and even upped his 2013 sales prediction from 163 million to 180 million.

What do you think? Were the cuts due to low demand, as stated by the Wall Street Journal, or because of aggressive holiday ordering? Do you believe Brian Blair’s analysis and prediction? Let us know in the comments below!

Source: Forbes

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