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Apple suppliers lowered Face ID accuracy; HSBC initiates on iPhone X sales optimism

Published 10/25/2017, 10:58 AM
© Reuters.  Apple suppliers lowered Face ID accuracy; HSBC initiates on iPhone X sales optimism
AAPL
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  • Bloomberg reports that Apple (NASDAQ:AAPL) allowed suppliers to reduce Face ID accuracy to speed up iPhone X production.
  • The iPhone X relies on Face ID for unlocking tasks previously managed by Touch ID, which the newer device lacks.
  • Limited supplies were initially expected due to the difficulty of producing the OLED panels but a problem with the 3D sensor system caused a later bottleneck that could severely constrain launch supplies.
  • KGI’s Ming-Chi Kuo predicts 2M to 3M units available on launch day and 25M to 30M in the holiday quarter. Apple sold 78M units in last year’s quarter.
  • In better news for Apple, HSBC initiates the company at Buy and a $193 price saying, “We believe a very large installed base of loyal, yet patient users can’t wait to get their hands on iPhone X.”
  • Analyst Steven Pelayo predicts 13% iPhone unit growth in CY18 with ASPs up 12% on the year due to the higher iPhone X price. He also forecasts a 20% unit growth for the Apple Watch with an 8% ASP increase.
  • Previously: WSJ details 3D sensor delays for iPhone X (Sept. 27)
  • Previously: KGI: Apple will ship 2M to 3M iPhones for X launch (Oct. 20)
  • Now read: Tricky Tuesday - Markets Flat Ahead Of The Fed

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