The iPhone 5 is expected to launch this week but thanks to the enormous influx of rumors, there really isn’t anything to leave room for surprise.
Brian White, market analyst for Topeka Captial Markets, sent a note to fellow investors on Monday morning stating the iPhone 5 will be considered the biggest upgrade in consumer history. He also predicts that Apple Inc. (NASDAQ:AAPL) will sell anywhere from ten million to twelve million units of the upcoming iPhone during the current fiscal quarter which is set to end late September.
And that’s not all. Chris Whitmore from Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) also predicts that the iPhone 5 will be a huge upgrade for Apple Inc. (NASDAQ:AAPL) thanks to their expected 4G LTE, taller design, small nine-pin dock connector, with four inch display screen, as well as two-toned design made from aluminum and glass. He explained, “We expect this feature set to drive a massive refresh cycle which should be reflected in Apple’s valuation over time. In short, we’d use any weakness in AAPL around the iPhone 5 event as a buying opportunity.”
If there is any weakness in Apple Inc. (NASDAQ:AAPL)’s stock this week, it’s possible that may be due to the lack of surprise during the unveiling. Whitmore doesn’t expect Apple Inc. (NASDAQ:AAPL) to have any features that weren’t rumored.
Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) was quick to note that previous iPhone announcements had a minor impact on the company’s share price and on average it went up one percent the day right after the announcement and up one percent after five trading days but also down two percent one month afterward.
The share price for Apple Inc. (NASDAQ:AAPL) was up on average of three percent, three months after the announcement of the new iPhone and an impressive 24% six months after the unveiling of their last phone.
The iPhone is a hit seller no matter how you change it.