Analyst: iPhone 4 Orders Increasing In 3Q

NEW YORK (AP) — Apple Inc. has likely increased its iPhone 4 orders recently to meet ongoing strong demand despite all the antenna troubles, said Sterne Agee analyst Vijay Rakesh in a note to investors Monday.

"Despite all the recent commentary on (Apple) with Antenna gate the supply chain is scrambling to make more of the iPhone 4," the analyst wrote in a note to investors.

Rakesh said he believes that third-quarter iPhone 4 builds have recently increased to more than 10 million units, especially as the phone makes it into all of the 88 countries it is expected to be sold in by the end of September.

The iPad tablet computer is also meeting solid demand, with suppliers adding more capacity by September, the analyst said.

The higher iPhone 4 orders should be a positive for key suppliers, Rakesh wrote, including Micron Technology Inc., SanDisk Corp. and Skyworks Solutions Inc.

"AAPL has been single-handedly helping the component supply chain as demand for its products continues to be strong," Rakesh said, adding that upcoming new products "could be another catalyst during peak holiday retail and back to school season."