Swiss bank Credit Suisse has claimed in a recent report that Apple has cut as much as 10% of its component orders due to slower than expected new iPhone 6s/6s Plus sales.
As a result, the bank has also lowered its iPhone sales estimates for 2016 to 222 million from 242 million, CNBC is reporting. The bank has estimated a 6% year-over-year growth rate in 2017. “We believe such adjustments reflect a more subdued launch around the iPhone 6s/6s Plus in terms of uptake”.
The bank further said that the cuts seem to be driven by weak demand for the new iPhone 6s, as overall builds are now estimated to be below 80 million units for the December quarter and between 55-60 million units for the March quarter. Interestingly though, the bank is not recommending investors sell the stock, but rather “buy any dips”.
“While we acknowledge that shares may remain range bound for the next few quarters (between $100 and $130), we continue to believe any weakness creates an attractive entry point. Specifically, we see scope for Apple’s rapid installed base growth of iPhone to drive future upgrades beyond the next few quarters and additionally see the installment plans structurally accelerating the upgrade rates of iPhone users,” the bank said.
Apple shares were down over 2.7% following the report. Here’s what PCMag’s Dan Costa said in an interview with CNBC: