For the second day in a row, there is a report on Apple (AAPL) cutting iPhone production.
Yesterday, Craig Berger of Friedman Billings Ramsey said December quarter iPhone production was likely to be down 40% from the previous quarter, worse than the 10% production cut he had previously expected.
Today, UBS analyst Maynard Um reports that his checks find “iPhone production and the associated supply chain may be experiencing some incremental
weakness due to concerns about end demand.” Um says production in the December quarter could be 4 million units; he maintains his sales forecast for the quarter of 5 million, but writes that “there could be some downside risk to this estimate given a weakening environment and checks within the supply chain.” Um cautions that “supply chain order and production plans can vary from week to week,” but that “recent data points may suggest unit volumes weaker than our current estimate.”
Apple shipped 6.9 million iPhones in the September quarter; about 2 million of those are estimated to be in carrier inventory.