Market Overview

Due In Stores This October, Reports Surface That Final iPhone X Production Has Not Yet Begun

Due In Stores This October, Reports Surface That Final iPhone X Production Has Not Yet Begun
Related AAPL
Consumer Discretionary Q4 Earnings: U.S. Consumer Appears Strong Amid Heightened Global Uncertainty
Apple Bull Weighs Impact Of Taiwan Semiconductor Guidance Cut, Battery Replacement
9 Monster Stock Market Predictions For The Week of January 21 (TalkMarkets)

The din surrounding the unveiling of the Apple Inc. (NASDAQ: AAPL)'s 10-year anniversary phone has settled down. Yet, there has been a continuous news flow on the iPhone X.

During its Asia tour visiting handset, networking and PC supply chain players, Raymond James dropped a bombshell regarding the itinerary for the iPhone X release.

At time of writing, shares of Apple were down 1.60 percent at $153.58.

Analyst Chris Caso said his checks pointed to incremental delay in the build plans, with orders firming up as recently as last week. Therefore, the analyst feels production will be shifted more into the December quarter.

As of now, preorders for the iPhone X are set to begin Oct. 27, with shipping expected to commence Nov. 3.

While cautioning that the checks are ongoing, Caso said initial feedback from its meetings indicated that final production of the iPhone X is expected to begin only in mid-October. The analyst clarified that this production schedule is about a month later than expectations a month ago and about two months later than expectations at the end of June.

See also: Why It's Too Soon To Judge Apple's Next Product Cycle

Supporting its deduction was commentary from Diodes Incorporated (NASDAQ: DIOD) last week, Raymond James said. Diodes indicated that the timing had changed since reporting its June quarter results.

Meanwhile, Raymond James said Chinese smartphone sales have rebounded in the second-half, although off a soft first-half. The firm added that the strength was led by OPPO, Samsung Electronic (OTC: SSNLF) and Huawei.

On the distribution channel, the firm said component distribution channels remained healthy, with suppliers seeing improving end-market conditions continuing through September. However, the firm noted that companies are wary of supply shortages in the December quarter on the back of holiday season demand. The firm also noted rising memory costs.

The firm sounded less optimistic about the upcoming 5G investment cycle, as it believes it would be a muted opportunity for suppliers as compared to the 4G build out.

"We're hearing carriers have yet to determine the value proposition of 5G, and with 4G coverage largely complete, the investment ramp is expected to be gradual, spread out over an extended period of time," the firm said.

Related Link: Google Buys HTC Division That Designed Its Pixel Smartphone

Latest Ratings for AAPL

Jan 2019CitigroupMaintainsBuyBuy
Jan 2019NomuraMaintainsNeutralNeutral
Jan 2019Canaccord GenuityMaintainsBuyBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Analyst Color News Rumors Previews Reiteration Events Analyst Ratings Tech Best of Benzinga


Related Articles (AAPL + DIOD)

View Comments and Join the Discussion!

Latest Ratings

CNPRBC CapitalUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Benzinga's Option Alert Recap From September 21

Analyst Says Amazon Is Now An 'Essential' Portfolio Holding