JP Morgan: Any 'iPhone 6' display shortage would have 'no impact' on sales, device launch

Posted:
in iPhone edited August 2014
Following a spate of rumors that late-term problems with the display on Apple's next-generation iPhone could force the handset's delay or seriously constrain supplies, at least one Wall Street analyst indicated that the issue -- if it even actually exists -- would not materially impact the launch of the so-called "iPhone 6."

Alleged 4.7-inch and 5.5-inch iPhone 6 mockups with iPhone 5s. | Source: TechSmartt via YouTube


"This sounds like a typical late-in-the-game supply chain story that turns out to have no impact on launch dates or devices sales," J.P. Morgan analyst Rod Hall wrote in a Monday morning note to investors which was provided to AppleInsider. "We believe that initial supply could be slowed somewhat if there is any truth to this but we doubt that iPhone unit volumes in the fall are likely to be impacted."

Apple suppliers were "scrambling to get enough screens ready" for the launch, Reuters reported last week. Two issues -- one said to revolve around backlight technology, and another referred to only as involving a "key component" -- were pegged as having a potentially serious impact on Apple's plans.

At the time, it was "unclear" whether the problems could "delay the launch or limited the number of phones initially available to customers," the outlet said.

As for the track record for Reuters, the news publication also claimed last year that Apple's iPad mini with Retina display may not arrive until 2014 due to alleged supply constraints. Of course, that report ended up being erroneous, as the high-resolution iPad mini launched last year without issue.

As has become customary in the lead-up to the release of a new Apple product, the "iPhone 6" has been the subject of numerous delay rumors. Most have revolved around the potential pushback of a 5.5-inch "phablet" variant, which is believed to remain on track but may not make an appearance at the company's rumored Sept. 9 special media event.

Apple is expected to launch its next iPhone in two screen sizes of 4.7 and 5.5 inches. If the company sticks to its usual release pattern, it will launch the "iPhone 6" two Fridays after its unveiling, which this year would fall on Sept. 19.
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Comments

  • Reply 1 of 30
    boredumbboredumb Posts: 1,418member

    I kind of like the idea of a three-size lineup...

    The current form factor will be iPhone6,

    then the iPhone 6G for Gigantic,

    then the 6WHG for Way Huge Gigantic...

    I got this from a fortune cookie, if anyone's curious.

    (wanted to be sure the day had its proper rumor ration)

  • Reply 2 of 30
    Maybe JP Morgan has more brain cells than I give them credit for.

    One would think Apple knows how to produce new iPhones after seven years of introducing new models every year.
  • Reply 3 of 30
    andysolandysol Posts: 2,506member
    As much as I want a 5.5" iPhone- I think id rather have Sog not be able to post for 60 days- so I'm hoping for 4.7" only now...
  • Reply 4 of 30
    philboogiephilboogie Posts: 7,671member
    Maybe JP Morgan has more brain cells than I give them credit for.

    Still, the title read weird: 'shortage' but not an issue. What does shortage mean, then? They'll be producing less then they wanted, but enough to fulfil requests from Apple?
    andysol wrote: »
    As much as I want a 5.5" iPhone- I think id rather have Sog not be able to post for 60 days- so I'm hoping for 4.7" only now...

    This post will be thumbed-up by every single member here.
  • Reply 5 of 30
    It's just a ploy to create a sense of urgency and heighten desire - if you develop an environment of short supply, more people want it - it's certainly works with me, I really, really want one !!!!
  • Reply 6 of 30
    mpantonempantone Posts: 1,528member
    Quote:

    Originally Posted by PhilBoogie View Post



    Still, the title read weird: 'shortage' but not an issue. What does shortage mean, then? They'll be producing less then they wanted, but enough to fulfil requests from Apple?

    Concerning the iPhone launch, "shortage" is likely a word used internally at Apple to indicate a production level not sufficient to achieve their internal revenue projections. It is not a word they would use in public.

     

    For the media, "shortage" is a bandied-about word used to describe heavy demand and perceived lack of supply to meet that demand. Apple has a method for dealing with this: simply withholding the launch in some markets (particularly smaller international markets) and carriers (particularly smaller US regional and prepaid operators).

  • Reply 7 of 30
    philboogiephilboogie Posts: 7,671member
    mpantone wrote: »
    ^ post

    That's a good explanation, tnx.
  • Reply 8 of 30
    Shortage means that Apple won't have as many phones available at launch as they wanted. JP Morgan says no impact, IMO because people who can't get a new iphone immediately will wait and not switch to a competitor. Apple gets the sale whether it is on launch day or a few weeks later. I think JP Morgan is pretty much correct. They'll lose a few sales to people who don't care much one way or the other. Probably gain some converts due to the additional cachet of a phone that's in high demand.
  • Reply 9 of 30
    Remember that alleged new product introduction date that hasn't been announced? Yeah, the problem that may not exist probably won't affect it.
  • Reply 10 of 30
    maestro64maestro64 Posts: 4,895member

    The analysis are playing both ends of the game, no matter what happens they can say they told us so.

  • Reply 11 of 30
    maestro64maestro64 Posts: 4,895member
    Quote:

    Originally Posted by sog35 View Post

     

     

    To be fair JPMorgan has been bullish on Apple for a while now


    and you do not think the analysis read what each other write, one say up and other says down, it does not matter what they believe it is a game they play together. The only time you will see most analysis in agreement is on the way down, but even then what the lights are about to turn out there is some analysis trying to paint a rosy picture.

  • Reply 12 of 30
    I hope Apple changes the form factor so the bezel at the top and bottom aren't as big as they currently are. The mock up looks hideous in this article! The bottom will have to be that thick if they don't change the shape and size of the home button, but their's no reason the top can't be redesigned to cut that space way down.
  • Reply 13 of 30
    philboogiephilboogie Posts: 7,671member
    sog35 wrote: »
    its happenning.

    I dont even want the 5.5 phone but even i can see the obvious.

    That makes me...sad.
  • Reply 14 of 30
    wingswings Posts: 261member

    What about the people who prefer a 4" iPhone? The only thing that size will be the older model 5S? Somehow that doesn't seem right. IMHO Apple should have 3 sizes, one keeping the 4" screen as an iPhone 6.

  • Reply 15 of 30
    Originally Posted by Wings View Post

    Apple should have 3 sizes, one keeping the 4" screen as an iPhone 6.



    They really ought to have just two....

  • Reply 16 of 30
    jungmarkjungmark Posts: 6,791member
    mpantone wrote: »
    Concerning the iPhone launch, "shortage" is likely a word used internally at Apple to indicate a production level not sufficient to achieve their internal revenue projections. It is not a word they would use in public.

    For the media, "shortage" is a bandied-about word used to describe heavy demand and perceived lack of supply to meet that demand. Apple has a method for dealing with this: simply withholding the launch in some markets (particularly smaller international markets) and carriers (particularly smaller US regional and prepaid operators).

    Apple won't release the iPhone if there is a shortage. And by that, i mean if The supply levels is less than what Apple predicts, Apple will modify release date.
  • Reply 17 of 30
    sirlance99sirlance99 Posts: 1,258member
    Remember that alleged new product introduction date that hasn't been announced? Yeah, the problem that may not exist probably won't affect it.

    Allegedly the sun is supposed to come up tomorrow.
  • Reply 18 of 30
    sirlance99sirlance99 Posts: 1,258member

    They really ought to have just two....

    They really ought to have four...
  • Reply 19 of 30
    Originally Posted by sog35 View Post

    By the way there won't be any 5S.  The 5S will be placed into a plastic shell with a few minor upgrades and be called the iPhone Color.  Its called progress.


     

    Complete and utter tripe. Stop your nonsense.

  • Reply 20 of 30
    Just like every year there are delay rumors.

    Just give me a new 4" phone Apple. That's all I want. And if not the 4.7" should work. And gold, please. Please have enough gold versions.

    And leave that 5.5" for other companies.
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