Apple Inc. (NASDAQ:AAPL)’s new smartphone device, the iPhone 5 is still facing supply constraints as demand continues to rise. According to a report by Piper Jaffray, the company now boasts 55 percent of the total demand for smartphone devices, amid a bottleneck in the supply chain.
The iDevices maker has been facing the hurdle since logging record preorders on September 14, subsequently postponing some of the scheduled deliveries and extending shipping dates by up to 4 weeks. Nonetheless, the demand for Apple Inc. (NASDAQ:AAPL)’s new device remains high; not even the few negative reviews with regard to its Maps app and the camera against direct light output could deter the rising demand.
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Piper Jaffray conducted a survey including 716 U.S. consumers before the launch of iPhone 5, and did the same survey again earlier this week, albeit with a population of 738 participants, which revealed the following results. The survey focused on identifying what type of smartphone the consumers were willing to buy, by the end of the year, which also coincides with the holiday season.
According to Jaffray’s survey, the demand for Apple’s new iPhone 5 has risen from 48 percent pre-launch, to the current 55 percent as compared to the closest rival, which is a combination of several smartphones running on Google Inc (NASDAQ:GOOG)’s Android O.S., that stands at 35 percent, down from 39 percent registered before the launch of iPhone 5.
The demand for Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone was also down four percentage points to stand at 5 percent, the same as Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM)’s Blackberry, which remained unchanged with 5 percent.
If this statistic could be replicated globally, then Apple Inc. (NASDAQ:AAPL) could be having a good chance of recouping some of the market share from Android platforms. Currently, Android, which is unanimously used in, Samsung Electronics Co. Ltd smartphones and tablets, holds a massive 67% market share, as compared to iOS at just under 20%.
However, the analysts also established that there is a major supply constraint for the device through Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) carrier networks. On the other hand, Sprint Nextel Corporation (NYSE:S) seemed to have enough supplies of the device to satisfy customers.
The analysts have maintained their overweight rating on the stock, with a price target of $900 per share, which is over 50% higher than yesterday’s close of $596.53, and one of the highest since the price started sliding three weeks ago. They analysts also believe that Apple Inc. (NASDAQ:AAPL) will be able to ship 45 million units of iPhone in the December quarter, despite the supply constraints.
At the time of this writing, Apple Inc. (NASDAQ:AAPL) stock was trading at $592.36 per share, down $4.17, or a $0.70 percent decline from yesterdays close.