Analysts from Barclays and Global Semiconductor research team believe that Apple Inc. (NASDAQ:AAPL) is disrupting all sectors in the technology industry, and it is generating profits and revenues from PC, mobility, printing, and retail stores.
According to the team of analysts and researchers, the smartphones and tablets, with the rise of apps and innovations severely disrupted the PC market. According to them, the iPhone 5 is at the center of “disruptive mobility.”
Based on research team’s Global Technology Outlook, companies associated with Apple Inc. (NASDAQ:AAPL), Samsung, big data, software-as-a service, security, and cloud computing providers will grow. In contrast, companies associated with PC’s will continue to suffer sales decline. The report projects that iPhone 5 and iPad would generate hundreds of billions of dollars in revenues, and there will be less room for growth in other technology sectors, especially if the Samsung Galaxy S3 is included in the equation.
Analysts expect the iPhone 5 is equipped with a larger display, faster processors, more DRAM and 4G LTE capable. They also expect that iPhone 5’s design will come out with a slimmer design and an enhanced Siri. Apple Inc. (NASDAQ:AAPL) is expected to produce 50 million units of iPhone 5 per quarter, after its official launching on September 12 in San Francisco.
According to the analysts, they expect a mojor upgrade with the iPhone 5, including a deeper integration of social media sites and data sharing with the iOS 6 that powers the device, which would help Apple to gain and retain users. The iPhone 5 will also features a new mapping application, better camera and it would allow users to use the FaceTime Networking Effect.
Analysts estimate that Apple will be able to sell approximately 23.4 million iPhones this quarter. They say iPhone sales will increase by 73 percent to 40.5 million. During the fiscal year 2013, analysts project that Apple will sell approximately 161.6 million iPhone, a 32 percent increase per share. The research firms’ report cited that Apple will possibly post a $0.25 to $0.30 cents earnings per share on each incremental 1 million iPhones above expectations. See chart below:
Analysts from Barclays said they expect Apple’s production to be on schedule, citing reports that Sharp started its in-cell display production and the approval of LG Display as one of its producers of in-cell display, this September.
Competition between Apple Inc. (NASDAQ:AAPL) and Samsung Electronics remain strong with the launching of various Samsung products including PCs, tablets, and smartphones powered by Microsoft’s (Nasdaq:MSFT) Windows 8, despite its losing its patent infringement battle in August.
SC Bae, analysts from Barclays Korea Technology, said the result of the litigation would force Samsung to innovate its design and strengthen its competitiveness. According to him, Samsung is expected to introduce bypass technologies in place of the “pinch to zoom” and “tab to zoom” soon. He also believes that there is a possibility for the South Korean electronics company to experiment outside the Android operating system, and to pursue creative alternatives outside Apple’s utility patents.
According to Barclay’s analyst Jeff Kvaal, Microsoft’s Windows 8 operating system is strategically more beneficial for Samsung compared with the Android operating system because it provides patent protection.
In terms of digital camera on smartphones, Barclays analysts believe that iPhone is favored by consumers based on the data compiled from Flickr.com. See data below:
Barclays noted the volume for Apple’s Mac units declined by 11.6 percent year over year. Analysts cited that Apple’s PC demand is affected by the weak economy, and the launching of new iMacs would help boost the company’s sales by December this year. Apple’s MacBook Pro with retina display, as well as its next generation iPads, are already available. Analysts expect the Apple TV 1080 p will gain popularity among consumers by the end of 2012. They believe that consumers will soon realize the benefits of iPlay and iCloud, as the company sells more iOS devices.
Meanwhile, iPad remains the top selling tablet at Amazon.com, Inc. (NASDAQ:AMZN). The app store is one of the primary factors in retaining customer’s loyalty to Apple’s iPhone, Ipad, and iPod Touch. As of July 2012, 30 billion users downloaded from the App Store.
Barclays Equity Research stock rating for Apple Inc. (NASDAQ:AAPL) is under weight and its target price for Apple stock remained at $750 per share.
