Apple iPhone 8 Build Reduction Rumors Aren't True: BlueFin

Some Wall Street analysts have commented that Apple Inc. AAPL is revising iPhone 8 build reductions lower.

According to BlueFin Research Partners' John Donovan and Steve Mullane, however, there's no evidence of this.

Donovan and Mullane commented in a report that the iPhone 8 build hasn't even started yet and demand for the iPhone 7 remains "vibrant." As such, it remains "puzzling" why some analysts are expressing concern over a lower build figure.

"Even the 'rumored 100M build' number was odd as if it were solely iPhone 8 totals, they are as much as 30 percent HIGHER than what we are tracking already," the analysts noted. "If the totals were all new iPhones (iPhone 7s, 7sPlus, and iPhone 8), they are as much as 25-30 percent LOWER than we are tracking."

iPhone 7 Still Hot

The analysts said recent checks also uncovered better-than-expected strength in iPhone sales throughout March. Their checks are also pointing towards a better-than-expected calendar first quarter build and shipment of 50 million to 52.5 million iPhone units.

Finally, the analysts expect Apple to ship 43 million to 44 million iPhone units in the second calendar quarter, which marks an increase of 2.5 million units on the high end versus prior expectations.

Bottom line, Apple is seeing "late positive momentum" in iPhone 7 shipments, which makes the iPhone 8 build reduction rumors "unfounded in our view."

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