Following reports from WSJ that Apple is cutting component orders for iPhone 5 due to “weaker-than-expected-demand,” Jeffries analyst Peter Misek is out today with a note to clients claiming initial production of the iPhone 5S will begin in March for a June/July launch (via StreetInsider):
Back in December Misek also claimed the 5S is coming in June and at the time said he expects Apple to ship the device with multiple colors, improved battery life, and possibly a 4.8″ Retina/IGZO display. However, in today’s note Misek said there has been no additional evidence for the 4.8″ prototype signaling the design could be for the iPhone 6. Today he also added his thoughts on rumors of a low-cost iPhone, claiming Apple could release a low-cost device made of polycarbonate with no LTE and a 4″ non-retina display.
As for the rumors of less than expected iPhone 5 demand contributing to cuts on component orders, which is also impacting the company’s stock price this week, Misek provided his thoughts:
Commenting on fears of of large CQ1 component order declines, Misek believes the primary drivers are: 1) an assembly bottleneck caused component inventories to rise in CQ4; 2) new iPhone builds starting in March; 3) demand being in line to slightly below optimistic expectations.
Today, AllthingsD reiterated another rumor, Apple’s move to IGZO displays, as a possible source of component cuts:
