Apple’s iPhone 5s is set to hit stores next Friday, but some industry analysts are warning that the device’s new fingerprint reader could slow production and even cause inventory shortages for the new flagship smartphone. Both Cantor Fitzgerald and Jeffries & Co. have warned investors that yield issues could drag Apple’s stock even further down.
In a note to investors, Jeffrie’s Peter Misek claims that Apple’s suppliers have, “started to receive build plan cuts” for the iPhone 5s. Given that the new smartphone is very close in design to the 5 there are only a few possible culprits, and Misek’s sources point to “terrible” sensor yields. Meanwhile, Cantor analyst Brian White warns that the unprecedented lack of a pre-order option for the iPhone 5s serves as a huge red flag, pointing to supply constraints and possible shortages.
Thankfully, Apple may have a backup in the iPhone 5c, which opened up to pre-orders today, suggesting the company has had no issues mass producing the plastic smartphone — even though unlocked 16GB units are already sold out on Apple’s site. White notes that the new handset was available for pre-order around the world starting this morning, and has seen no change in delivery status, unlike the iPhone 5, which saw immediate delays within the first few hours that pre-orders were available.