Hi-P International disappointed by iPhone5 sales

It was a record sale of 5m units, but here's the catch.

According to DBS Vickers, strong demand for iPhone but supply issues hold back sales.

Here's more from DBS Vickers:

Although iPhone 5’s first weekend sale was a record 5m units compared to 4m for iPhone 4S’ opening weekend sales, the tally would have been higher if not for supply constraints of components such as in-cell touch panels and casings.

On average, street estimates of iPhone 5 shipment for the December quarter has been adjusted down by 10% to 45m from 50m.

2H12 ramp up is decent but not great. Due to the curtailed shipments, Hi-P’s 2H ramp may not be as strong as we had hoped for. Based on our revised quarterly projections, sales is now estimated to grow 30% h-o-h to S$688m with net profits of S$45m, down from our previous forecast of S$52m as we lower 4Q sales (-10%) and gross margin (-150bps) assumptions.

Despite a 15% downward revision in earnings forecast, S$45m profit is still a good recovery versus 1H12’s net loss of S$0.6m.

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