A report from Taiwan’s Commercial Times on Wednesday says Apple is reducing shipments of the iPhone 4S by 10 to 15 percent, and telling its suppliers to scale back and delay delivering components until early next year. But the conclusion doesn’t line up with accounts from Apple and other third parties that show the iPhone 4S has sold well since launch and is continuing to do so.
Analysts like Maynard Um of UBS are jumping in Wednesday to call the report “without merit” and say that “iPhone 4S demand is not an issue. Our recent checks indicate that iPhone 4S is still selling out and experiencing 1-2 week waits for online orders with demand also driven by accelerated carrier/country launches.”
Others analysts that follow Apple and inform their investors about the company’s status agree it does not match up. RBC Capital Markets’ Mike Abramsky wrote Wednesday that a possible explanation could be Apple strategically adjusting its supply chain for better pricing by “pulling back its typical over-ordering of components.”
With continued strong demand in the U.S., with more countries still set to have their first chance at buying it, and with the holidays coming, it would defy logic that Apple would be scaling down its production rather than making even more iPhone 4S devices.