Cantor Fitzgerald Says Apple Suppliers Are Playing iPhone Production 'Catch-Up'

Apple Inc.'s (NASDAQ: AAPL) iPhone 6 Plus remains in "severe shortage" even as Chinese contract manufacturers' output is skyrocketing, an analyst said Friday.

Apple's largest supplier, Hon Hai Precision Industry Co., Ltd. (OTC: HNHPF), posted September sales showing a growth of more than 50 percent over August, Cantor Fitzgerald's Brian White said.

Apple supplier Pegatron Corp. (OTC: PGTRF) reported September sales growth of 63 percent over August, White said.

White said the factories are now "playing catch-up" because of delays in launching the phones.

"While this is good to see, we are more focused on the start of iPhone pre-orders in China" slated to get underway Friday, said White, who maintains a Buy and $123 target on Apple.

Employees at both suppliers are churning out the Apple phones in exchange for an hourly wage of $1.50, while working 11-hour shifts between six and seven days each week, according to New York-based China Labor Watch.

Posted-In: Brian White Cantor FitzgeraldAnalyst Color Analyst Ratings Tech

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