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."

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