Component Prepayments Reveal Production Plans for Apple

As MMW has reported on multiple occasions in recent weeks, it is widely believed that Apple’s 6th generation iPhone has already gone into production in Asia.

More clues supporting that suspicion came to light Monday as a new report shows that Apple’s prepayment for inventory components is presently the highest in four years.

All Things D uncovered that prepayment for inventory components rose $1.15 billion sequentially in the June quarter.

Needless to say, that strongly suggests Apple is in the process of building something.

“Historically, such increases have been followed by a solid ramp-up in revenue in the following 2-3 quarters,” says Wells Fargo Securities analyst Maynard Um. “In our view, an increase in inventory component prepayment may suggest that Apple is securing supply for potential new product launches.”

The rumor mill currently anticipates Apple dropping the 6th generation iPhone sometime in September or October.