iPhone 5 Orders: Shaw Wu has No Concern Over Apple iPhone 5 Order Cuts

iPhone 5 Orders: Yesterday, we published a story – Has Apple Inc. Cut iPhone Component Orders – discussing the possibility that Apple Inc. (NASDAQ:AAPL)’s smartphone is dealing with weaker than expected demand.

While it is safe to say that the news surrounding component orders is confusing, not everybody is ready to hit the panic button. In fact, Sterne Agee analyst Shaw Wu does not see any reasons to get excited. He believes that consumer demand for the iPhone 5 remains strong.

Apple Inc. (NASDAQ:AAPL) Press Info

In a note to investors as reported by AppleInsider, Wu remains confident that demand for the smartphone phone “remains robust.”

The article goes on to say:

“Wu joins a growing chorus of market watchers who believe any order cuts for iPhone 5 components are not representative of consumer interest. Mark Moskowitz of J.P. Morgan said the reports are just “more noise” that will prompt investors to overreact, while Maynard Um of Wells Fargo said any cuts are actually “not news.”

So what does Wu think about all this? Although he may believe that demand for the iPhone 5 remains strong, it is hard to hide from the fact that component orders have been cut.

Here is a breakdown from the same AppleInsider piece:

“For his part, Wu believes that reduced orders for iPhone 5 components are a result of improved yields, which has required Apple to place fewer orders for components. In addition, he said supplier shift changes made by Apple have contributed to the cuts.”

In other words, he doesn’t believe for a minute that reduced orders for components is related to weaker than expected demand.

AppleInsider also takes a closer look at what Wu thinks about Apple Inc. (NASDA:AAPL) in the near future: