iPhone Shortage: Supply Woes or New Model?

SAN FRANCISCO(Reuters) – Apple’s iPhone is in short supply at many of its U.S.stores, which could indicate a component shortage or a clearing ofshelves for a new model, analysts said on Wednesday.

Bernstein Research said its iPhone supply checks showed that themultifunction device appeared to be out of stock at Apple’s U.S. storesand its online store, which could lead to lost sales of up to 40,000units a week in the event of a prolonged shortage.

Sacconaghi said the impact so far was limited, estimating theaverage Apple store was out of stock for only a few days during theMarch quarter, and that supplies appeared to be fine at stores ofwireless carrier partner AT&T Inc.

"In our view, the most likely explanation for this unusual situationis a production shortfall, possibly due to a component shortage,"analyst Toni Sacconaghi wrote in a note.

Apple declined to confirm if there was an iPhone shortage, butspokesman Steve Dowling said: "We are working to replenish iPhonesupplies as quickly as we can and our stores continue to receiveshipments almost every day."

Recent reports of iPhone shortages have fueled speculation thatApple is readying a new version of the device that will run on faster3G wireless networks.

Apple could introduce a new iPhone in June or July, about threemonths earlier than previously expected, said American TechnologyResearch analyst Shaw Wu, citing checks with unidentified supply chainsources.

"What gives us higher conviction in the accelerated timetable isthat iPhone inventory levels appear fairly lean, which is consistentwith Apple’s tendency to wind down inventory ahead of an update," Wuwrote in a note.

Wu forecast Apple would sell 11 million phones by the end of 2008,10 percent more than the company’s stated goal, thanks to a new model,wider adoption among businesses, and price cuts.

Apple shares fell 1.4 percent to $147.38 in early afternoon tradingon Nasdaq. The stock is up 19 percent over the past month but is stillnearly 25 percent below its level three months ago amid concerns that aslowing economy will dampen consumer spending.

(Reporting by Scott Hillis, editing by Richard Chang)