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Tag: Sterne Agee

  • iPhone 5 shipping times improve, device ETA now stands at 2-3 weeks

    Maybe things are getting a little better over at the Foxconn plant…

    Per AppleInsider, availability of the iPhone 5 continues to improve, as Apple’s website now advertises that all models ship within two to three weeks.

    The latest estimated shipping times are an improvement from the previously advertised timeframe of three to four weeks. The shipping time applies to both the black and slate as well as the white and silver models, in all three capacities.

    The improved shipping times corroborate reports from last week that revealed Apple’s supply was catching up with demand for iPhone 5 inventory at its U.S. retail stores. Gene Munster and his team at Piper Jaffray found that 54 percent of 100 Apple Stores had the AT&T iPhone 5 in stock, while 24 percent had the Verizon model, and 84 percent were stocked with the Sprint variety.

    Those numbers from last week were a major improvement from the weeks prior, when supplies of the iPhone 5 were severely constrained, particularly for AT&T and Verizon customers.

    “We believe this is an important step for Apple as it appears they are finally gaining momentum in being able to keep up with demand for the iPhone 5,” Munster wrote. “We believe that if AT&T and Verizon device availability follows the same trend as Sprint, it may only be 2-3 weeks before iPhone 5s are consistently available to customers.”

    Also last week, Shaw Wu with Sterne Agee said his checks within Apple’s supply chain found that the company had significantly improved its production capacity of the iPhone 5 since the device launched in late September. According to Wu, the supply chain bottleneck for the iPhone 5 moved from components to the assembly of the device itself.

    Earlier reports claimed that the iPhone 5’s in-cell touch panel and aluminum chassis have caused quality control issues for both Apple and Foxconn. One unnamed source from Foxconn said in October that the iPhone 5 is “the most difficult device” the company has ever been tasked with assembling.

    If you’ve gotten word as to when your iPhone 5 is expected to ship, please let us know its estimated delivery time in the comments.

  • Analyst: ARM-based Macs “inevitable”, though still a ways off

    Apple’s future may be in the hands of ARM some day.

    Per AppleInsider, Sterne Agee analyst Shaw Wu has gone on record as saying it’s “inevitable” that Apple will merge its Mac and iOS devices at some point, but such a change is not expected to happen for years.

    Wu said in a note to investors on Tuesday that he believes it will take Apple some time to optimize its Mac OS X operating system for the ARM processors currently found in the iPad and iPhone.

    Intel processors are currently much more powerful for running intensive Mac applications, as well as for development. But he believes that ARM processors will eventually become powerful enough to replace Intel chips.

    In his view, making Apple’s entire product line based on custom-built ARM-based processors would simplify the architecture of its devices, and also help to create a more seamless experience for users.

    Wu also noted that the Mac represents just 14 percent to 18 percent of Apple’s total revenue. In comparison, the iPhone accounts for between 45 and 50 percent of the company’s revenue, and the iPad is 20 to 25 percent.

    Wu’s take was issued in response to a report that surfaced on Monday from Bloomberg, which indicated that Apple’s engineers are confident that the company’s A-series custom chip designs will one day be powerful enough to run the company’s desktop and laptop machines. ARM-based silicon in Apple devices is currently limited to iOS devices.

    Monday’s report also suggested a change to ARM processors is not likely to take place “in the next few years.” But it also portrayed a shift to proprietary chip designs as an “inevitable” transition for the company in the future.

    Apple is said to have a team dedicated to the project, with engineers working to design a lineup of machines that rely on a common chip design. Apple already employs this approach with its current lineup of iPhones, iPads and iPods.

    A potential switch to ARM chips would pose a challenge to Intel, Wu said. He noted that Apples’ 11-inch MacBook Air gets four to five hours of battery life under heavy use, compared to 10 hours of battery life with an ARM-based iPad.

    Reports suggesting Apple could power future Macs with ARM processors are not new. One recent story issued in October also said Apple has “deliberated” moving its lineup of Mac computers away from Intel processors, though such a change was said to not be “imminent.”

    Apple has made headway in designing its own custom silicon for the iPhone and iPad. Earlier this year, rumors suggested Apple was looking to use its own ARM processors in upcoming iterations of the MacBook, especially in power-critical applications like the thin-and-light MacBook Air.

    Stay tuned for additional details as they become available.

  • Retina Display supplies constrained by demand, shift in labor practices for Foxconn workers

    If you don’t have enough of a given part, it makes assembly a bit harder.

    Then there’s the awkward part about easing working conditions for your labor force…

    Per AppleInsider, demand for Apple’s new iPad remains strong, but production of the device has reportedly been limited by supply of Retina displays, as well as a new focus on employees at Foxconn that has resulted in worker hours being cut.

    Analyst Shaw Wu with Sterne Agee aimed to quash some investor concern on Wednesday that demand for the new iPad is waning. That’s not true, he said, as his checks within Apple’s supply chain have found that the company continues to have strong interest in its latest touchscreen tablet.

    Instead, he said, it’s supply of the new high-resolution Retina display that has limited shipments of the latest iPad. He expects that situation to improve over the coming quarters, as additional production lines and suppliers are added.

    Samsung is currently believed to be the primary supplier of Retina displays for the new iPad. Both LG and Sharp were said to have initially struggled in making the high-resolution screens for Apple, but recently began small-volume shipments.

    Another factor in iPad supply, Wu said, has been the fact that Foxconn is now “conforming to more sound labor practices.” Last month, following an independent audit by the Fair Labor Association, Apple’s manufacturing partner Foxconn agreed to fix a number of violations that were discovered, including excess working times by its factory employees.

    “This is in an effort to improve working conditions,” Wu said. “From our understanding, the irony is that many employees prefer to work more overtime.”

    Some Foxconn workers publicly questioned last month why their hours were being cut after the review conducted by the FLA. Foxconn reduced employee working hours to 49 per week, including overtime, but the change will also result in smaller paychecks for workers.

    Because iPad production has apparently been slowed by factors other than demand, Wu has opted to raise his estimates for sales in the current quarter. He now sees Apple having sold 12.3 million iPads in the already-concluded March quarter, up from his previous forecast of 11.5 million.

    Stay tuned for additional details as they become available.

  • Apple launches MacBook bottom case replacement program for Unibody MacBooks shipped between October, 2009 and April, 2011

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    Over the past couple days, Apple has initiated a case replacement program for MacBooks shipped between October 2009 and April 2011 to resolve an issue where the rubber separates from the bottom of the case.

    Per AppleInsider, the MacBook Bottom Case Replacement Program is available to owners with affected MacBooks, regardless of current warranty status.

    Apple offers three options for replacing the case: set up an appointment with an Apple Genius and visit an Apple Retail Store; visit an Apple Authorized Service Provider; and self service by ordering a replacement case kit online. Do It Yourself kits include a new bottom case, screws, a Phillips head screwdriver and instructions for removal of the old case and installation of the new one.

    Customers who have paid for a repair or replacement because of the issue can also contact Apple regarding a refund. The note advises that no action is required for owners who aren’t currently experiencing the issue.

    The program will be offered worldwide and will cover affected MacBooks for two years from the original purchase date, though it does not extend standard warranty coverage. Further extensions of the program may come as Apple continues to “evaluate service data.”

    Apple introduced the redesigned polycarbonate unibody MacBook with a unique non-skid rubber bottom in October 2009. The entry-level notebook line received a quiet update in May 2010, adding Nvidia GeForce 320M graphics.

    According to Sterne Agee analyst Shaw Wu’s checks with suppliers, the Mac maker will update the MacBook line in a matter of months. Wu estimates the white MacBook accounts for roughly one-third of Apple’s portable business, which makes up 73% of all Mac sales.

    If you’ve seen this issue on your end, let us know.

  • Analyst: iPad 2 constraints easing, supply improving

    In spite of the Japanese earthquakes and tsunami back in March, iPad 2 production restraints that affected Apple last quarter are said to have “significantly improved,” allowing for improved availability of the tablet.

    According to AppleInsider, Analyst Shaw Wu with Sterne Agee said Friday that Apple has found better yields in iPad 2 production through retooling and conversion of more overseas production lines. These changes have gone a long way in addressing the supply issues Apple experienced last quarter.

    Wu also cautioned that Apple is along way from meeting its internal goals for iPad 2 production. Previous rumors suggested Apple could ship as many as 45 million iPad 2 units this year, though predictions have dropped since Apple’s last quarter fell short of expectations for iPad sales.

    “From our understanding, [Apple] still has a ways to hit the [second half] goal of 3-4 million units per month but getting closer,” Wu wrote.

    Accordingly, Wu has increased his estimates for iPad sales in the current, third fiscal quarter of 2011 for Apple. He now sees the company selling 6.8 million iPads, up from his previous prediction of 5.9 million.

    Wu also increased his estimated iPhone sales to 17 million, up from 16 million. He said iPhone demand appears to be holding up better than expected, thanks to strong adoption of the white iPhone 4 and strong sales on Verizon.

    Wu also increased his projected Mac sales to 3.9 million from the quarter, up from 3.83 million. He is also assuming a new, higher gross margin of 39%, increased from 38.3%, due to improved iPad yields and higher iPhone sales.

    Finally, he’s also increased Sterne Agee’s 12-month price target for AAPL stock to $460, up from the previous prediction of US$445.

    So, if you want an iPad 2, odds are the one you want should be available.

    Stay tuned for additional details as they become available.