Apple (AAPL) iPhone X Shipments Ramping Up - Rosenblatt

Rosenblatt analyst Jun Zhang said their research showed Apple (NASDAQ: AAPL) iPhone X shipments continue to ramp and could reach 3 million units by the November 3rd launch date.

They also believe the iPhone X production rate increased this week to 0.8-1.0M units/week with Hon Hai (2354-TT:NR) starting a 24 hour production schedule.

Zhang also believes Apple resolved the 3D sensing quality issue by replacing Murata (6981-JP:NR) components with new suppliers without reducing 3D sensing specs. They note that accuracy requirements are still very high and we no longer believe that 3D sensing is the iPhone X production bottleneck.

Rather, they believe the current production bottleneck is the FCB from a new supplier in Taiwan and a new dual-core battery production ramp.

Although 3D sensing assembly continues to face some yield issues, they believe LG Innotek (LPL:NR) can supply 4-5M units per month in October, higher than iPhone X production needs.

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