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Piper Jaffray analyst Gene Munster has a short note out this morning to counter the report Apple is cutting its iPhone 4S orders due to component shortages, or slow sales.Here’s Munster:
We believe recent chatter around iPhone 4S production cuts is off base and we remain confident in our 26.0m iPhone unit estimate for the Dec-11 quarter and our 112.5m iPhone unit estimate for CY12.
We remain confident in our iPhone unit estimates for two reasons:
1. Limited iPhone 4S Availability At US Apple Stores and Online. We called 30 Apple retail stores in the US on Monday (11/7) and found that 17 (57%) were completely sold out of iPhone 4S units. Of the 13 (43%) stores that had some stock, none had availability of all SKUs. Given the stock outages at US Apple stores nearly one month after the launch, we believe it is unlikely that Apple would cut production, when it clearly cannot build iPhones fast enough to meet demand. Also note that iPhone 4S lead times at the Apple Store Online (US) indicate limited supply with 1-2 week shipping delays.
2. Component Suppliers Suggest Orders On Track To Meet/Slightly Exceed Our Estimates. Based on our conversations with component suppliers, we believe orders from Apple remain on track to meet or slightly exceed our 26.0m iPhone unit estimate for the Dec-11 quarter and our 112.5m iPhone unit estimate for CY12.