Apple (AAPL) iPhone component suppliers are tempering their expectations for the company’s 12th-generation handsets, due out this fall, a Wall Street analyst said Monday.


Checks with Apple’s supply chain partners indicate the tech behemoth expects to build 80 million to 90 million new model iPhones in the second half of the year, RBC Capital Markets analyst Amit Daryanani said in a note to clients.

That is below suppliers’ year-ago expectations of 100 million to 120 million units for the current-generation models (iPhone X and iPhone 8 series) for the second half of 2017, he said.

“Compared to the very optimistic expectation for iPhone 8/X sell-through, supply chain partners now have a more subdued expectation,” Daryanani said. Supply chain partners are managing their inventory levels “more diligently” this go-round, he said.

Suppliers also anticipate a regular production ramp schedule for this year’s iPhone models, starting around May, he said.

Apple is seen releasing three new models this September: two with OLED screens and one with an LCD screen.

New Devices Expected

The new OLED screen models would include an updated version of the current 5.8-inch iPhone X, possibly called the iPhone XS. Another is a 6.5-inch screen model, possibly called the iPhone XS Plus, Daryanani said.

The new LCD model is rumored to feature a 6.1-inch screen and could be called the iPhone 9, he said. This model could account for about half of new production for the second half of the year, Daryanani said.

Daryanani rates Apple stock as outperform with a price target of 203.

Apple shares gained 1% to close at 170.05 on the stock market today.

Apple Sells Red iPhones

On Monday, the company announced special-edition red versions of the iPhone 8 and 8 Plus as part of a charitable initiative to raise funds for HIV/AIDS grants.

The (Product) Red special edition phones will be available to order online on Tuesday and in stores on Friday.

A portion of proceeds for all (Product) Red purchases go directly to Global Fund HIV/AIDS grants. These provide testing, counseling, treatment and prevention programs with a specific focus on eliminating transmission of the virus from mothers to their babies.

Since partnering with Red in 2006, Apple has donated more than $160 million to the Global Fund. Apple serves as the organization’s largest corporate donor, the company said.


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