American Technology Research analyst Shaw Wu says Apple’s Friday recall of iPhone 3G ultra-compact power adapters is a “minor speedbump” and affects “only a small number of users.”
In an advisory to clients, Shaw writes a check with supply chain sources finds “little disruption” in sales of the iPhone 3G 8GB. In fact, some AT&T stores are running out of supply, he said.
Shaw said Apple faces a “headline risk” from negative publicity surrounding the potential danger of defective USB power adapters. However, Apple retains its positive customer support image by offering free exchanges.
The reaction from the recall will further be lessened because many iPhone users opt for a USB cable to charge their device, much as they do to sync content with iTunes.
The analyst said he maintains a “buy” rating on Apple of $205.
In a related development, Piper Jaffray analyst Gene Munster increased to 5 million his estimate for iPhone sales during the quarter ending Sept. 30. Munster had previously expected Apple would sell 4.1 million handsets.
2 responses to “iPhone Recall ‘A Minor Speedbump’”
Headline risk? With link-bait headlines like “iPhone Recall…” instead of “iPhone Power Adapter Recall…?” Perish the thought.