iPhone 5 sees mixed demand, says analyst

Retail checks show steady demand for the iPhone 4 and 4S but a mixed reaction for the current iPhone, says analyst Ittai Kidron.


The iPhone 5 may not be quite as hot as its precedessors, at least according to a new report from Oppenheimer analyst Ittai Kidron.

In an investors note out Tuesday, Kidron cited retail checks that indicate "steady demand for the iPhone 4/4S and mixed demand for the iPhone 5." And the analyst predicts the trend will continue. As a result, he now expects iPhone sales of 26 million for the current quarter, down from his prior forecast of 27 million.

The September quarter may also be a bit dicey. Though Kidron still believes a new iPhone will debut in September, he doesn't think it will launch early enough to beef up the entire quarter.

"Our previous estimates also reflected a nearly full September quarter contribution from a new iPhone, which looks overly optimistic at this point," Kidron said. "We still feel a September month launch and QoQ [quarter on quarter] volume increase are possible, but with our checks already showing signs of delayed iPhone 5 purchases, there's still risk to our lowered estimate [of 29 million in iPhone sales]."

Kidron doesn't see a bigger-screen iPhone, an iWatch, or an Apple television (iTV) in the cards for September. But when and if it debuts, an Apple smart TV has the potential to rev up consumers and investors.

"We see a larger iPhone as a [calendar year 2014] reality, but only mildly incremental to estimates/sentiment," the analyst added. "We're lukewarm on an iWatch, but view iTV as having more game-changing/innovation-reaffirming potential."

Read the full CNET Review

Apple iPhone 5

The Bottom Line: The iPhone 5 completely rebuilds the iPhone on a framework of new features and design, addressing its major previous shortcomings. It's absolutely the best iPhone to date, and it easily secures its place in the top tier of the smartphone universe. / Read full review

About the author

Journalist, software trainer, and Web developer Lance Whitney writes columns and reviews for CNET, Computer Shopper, Microsoft TechNet, and other technology sites. His first book, "Windows 8 Five Minutes at a Time," was published by Wiley & Sons in November 2012.



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