Suppliers in the Far East are reportedly anticipating 20% growth in iPhone sales when the new model launches later this year. Apple’s upcoming smartphone is rumored to include a bigger screen, which should make it more appealing to modern-day consumers.
According to Morgan Stanley’s analyst Katy Huberty there are no major bottlenecks for “iPhone 6” components, suggesting that Apple and its suppliers won’t have problems in keeping up with demand.
She said that the next iPhone will likely have a bill of materials $20 to $30 higher than the current iPhone 5s, due to the mentioned bigger screen and improved camera.
“However, we don’t detect any abnormal component pricing pressure from Apple suggesting lower inventory, deprecation, and warranty costs along with the potential for a modest price increase and/or NAND mix change may help digest the higher (bill of materials),” Huberty wrote.
Beyond the iPhone, she expects the rest of the year to be weak for the tablet market, and yes – that includes Apple’s iPad. Suppliers of the Cupertino giant forecast a 1% decrease in iPad shipments in the second half of the year and through 2015.