Apple Inc. (AAPL) May Ship Fewer iWatch Units This Year: Analyst Kuo

Previously, Apple Inc. (NASDAQ:AAPL) was expected to ship as many as 5 million to 10 million units of the much awaited iWatch before the current year comes to an end. This information was given to investors by the analyst Kuo of KGI Securities through a note. However, this estimated figure has been lowered by Kuo now, saying that the company is facing certain issues that will affect the production; hence the device will be released sometime in mid-November than the earlier expected September month. Also, the units offered for sale will reduce to 3 million, as per expectations by analyst Ming-Chi Kuo.

Issues with Sapphire cover lens

Also, the sapphire cover lens production could pose problems for Apple Inc. (NASDAQ:AAPL) as informed by Kuo. This will lead to shipping 50% of the completed devices with glass covers instead of sapphire, predicts Kuo. Supply chain checks informed that the touch module for the iWatch will be supplied by TPK, and LG Display has been entrusted with the responsibility of providing the lamination services of the touch module.

Rumors about iWatch facing issues with production have been there for quite a long time now, and this one is the latest. Apple Inc. (NASDAQ:AAPL) is in a hurry to get the product in the market as soon as possible owing to increasing competition. Some rumors are saying that the company will begin the production no sooner than the fourth-quarter. But this is not in-line with the analyst’s expectations of the device coming to market during the holiday shopping season.

iWatch launch may hit Apple stock

The iWatch will not be offered for wide distribution before December is what we got to hear from Kuo earlier this month. The analyst, also, had warned the people that the quantity initially offered for sale will be inadequate to meet the market expectations. This stance of Kuo was reiterated once again on Thursday, where he said that the shares of the company could decline after the release as “excess market optimism” is prevailing.

The fact that Apple Inc. (NASDAQ:AAPL) has deviated from its earlier practice of manufacturing its devices with normal component to using more advanced parts and materials is causing difficulties during the manufacturing process and hence the delays.