Rosenblatt analyst, Jun Zhang, reiterated his Buy rating on shares of Apple (NASDAQ: AAPL) tier one Chinese OEMs have increased their component orders for Q2 by at least 15%. He stated "we believe overall Q2 component orders are trending higher than our previous estimates. We look for both Vivo and OPPO to in-crease component orders from 24 to as much as 30-31 mln units per quarter. Xiaomi has also increased orders from 30 to 35 million units for Q2".

At first glance this looks like a positive for Apple especially considering the reduction in inventory. However, the analyst posits that the increase in demand could indicate increased demand for the new notch design smartphones, recently launched by Chinese OEMs which could pose low end competition for Apple's higher priced models.

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Shares of Apple closed at $176.57 yesterday.