Analyst: iPhone Order Cutback Reports are Wrong

Customers line up for the iPhone 4S in San FranciscoCustomers line up for the iPhone 4S in San Francisco

“We believe the Commercial Times report is without merit and believe iPhone 4S demand is not an issue,” Mr. Um said. “Our recent checks indicate that iPhone 4S is still selling out and experiencing 1-2 week waits for online orders with demand also driven by accelerated carrier/country launches.”

He added that parts suppliers “have very recently indicated strength into [the calendar fourth quarter], which would be counter to weakening demand.”

Apple began selling the iPhone 4S in the U.S. and a handful of other countries on October 14, and managed to sell over 4 million units during the first weekend of availability. The company expanded sales into 22 more countries on October, and already has 15 more countries lined up for November.

iPhone 4S pre-orders sold out in Hong Kong in about 10 minutes, adding to the notion that demand for Apple’s newest combination iPod and smartphone isn’t waning.

Mr. Um is maintaining his “Buy” rating and US$510 target price for Apple’s stock. Apple is currently trading at $397.57, down 8.66 (-2.13%).

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