This is not a repeat of 2012: We acknowledge that with Apple building iPhone component inventory, supply chain data points are likely to be volatile as builds and shipments converge over time. While these headlines may weigh
on the stock near-term, we are buyers on any related weakness as we see an upward bias to our iPhone unit and gross margin assumptions for the reasons discussed above. We do not view the current set-up as similar to 2012 given
1) gross margins are improving (not deteriorating) as we head into the next iPhone cycle,
2) low institutional ownership,
3) competitive product line-up / stickier ecosystem against Android handsets, and
4) more robust product/services roadmap.
--> Full note attached.