Apple Inc. rolled out the iPhone 5 last week, and despite some initial hesitation, it seems the sell side really likes the phone. Analysts think the phone will give a big boost to Apple’s earnings, along with many other suppliers. Even, FedEx is expected to get a boost from iPhone 5 shipments.
Barclays (BCS) is out with a long research report on the iPhone 5 today, titled, ‘Expecting Strong iPhone 5 Ramp Through March Quarter, After Initial Shortages.’ Barclay’s does not change its price target from the current $810, but ramps up their iPhone sales forecasts. Below are some brief highlights from the BCS report.
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Barclays believes that Apple Inc. (NASDAQ:AAPL) is leading the “disruptive mobility” trend, extracting profits and revenues from PC, mobility, printing, and even retail sectors. Fastest iPhone Rollout Yet: Last Wednesday (9/12) Apple Inc. (NASDAQ:AAPL) introduced the new iPhone 5 and we were impressed with the pace of the rollout given concerns around production shortages. Apple Inc. aims to distribute the iPhone 5 through 240 carriers worldwide by year-end, making it the fastest Apple Inc. (NASDAQ:AAPL) iPhone launch yet. Their iPhone unit estimates for the September quarter are unchanged at 23.43 million in case Apple faces product stock outs. However, they estimate iPhone unit sales will surge to 45.21 million, up 22.0% y/y and 93% q/q in the December quarter (F1Q13). They believe production plans call for about 50 million iPhone 5 units alone in the December quarter, not including older models and expect strong sales to continue through the New Year. The main driver of iPhone sales momentum into mid-calendar 2013 could be China, where Apple Inc. (NASDAQ:AAPL) needs to strike a deal with China Mobile Ltd. (NYSE:CHL) for the first time.
iPhone 5 Refresh Cycle Extends Across Tech: Earlier this year in Barclay’s publication, Global Technology Outlook: A look at the three columns of tech investing, we introduced a new way to look at investing in the tech sector, postulating that winners in tech are companies that are highly exposed to Apple Inc. (NASDAQ:AAPL) and Samsung’s product cycles. They also have highlighted our view that Apple Inc. (NASDAQ:AAPL) and its iPhone and iPad lines are at the center of “Disruptive Mobility” – extracting profits from traditional tech sectors like PC’s and printing, to name a few. They look at Apple Inc. (NASDAQ:AAPL)’s supply chain and examine many other companies who benefit from iPhone 5 Product Cycle including Cirrus Logic, QUALCOMM, Inc.(NASDAQ:QCOM), Broadcom, Hon Hai, AAC, Ibiden and LG Display to name a few.
More in-depth data from the report to follow.
Disclosure: No position in any securities mentioned