LG Results Point to Strong Apple Inc. (AAPL) Sales: Stifel

September quarter revenue for LG Electronics Inc. (KRX:066570) (KRX:066575) was $6.122 billion. This number was down ~9 percent year over year, yet it’s also up 45 percent sequentially. The mobile segment increased over 56 percent and the tablet segment increased over 49 percent during the September quarter. Industry reports in the past claimed that most of LG’s mobile business segment is involved with Apple Inc. (NASDAQ:AAPL).

LG Results Point to Strong Apple Inc. (AAPL) Sales: Stifel

LG Electronics Inc. (KRX:066570) (KRX:066575) reported their mobile segment is about fifteen percent of their total revenue (compared to 10 percent from the previous quarter). This could also imply a 52 percent year over year increase during the September quarter.

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Expectations for Apple’s fourth-quarter financial report

In other Apple Inc. (NASDAQ:AAPL) related news, Verizon Communications Inc. (NYSE:VZ) reported that the Cupertino-based tech giant couldn’t meet the demand for the iPhone. CNN Money’s Jose Pagliery explained, “Chief Financial Officer Fran Shammo told analysts on a conference call that Apple Inc. (NASDAQ:AAPL) couldn’t provide Verizon with enough iPhone 5S smartphones in the first weeks following its release, resulting in a backlog of orders. That might not bode well for Apple Inc. (NASDAQ:AAPL)’s fourth-quarter financial report, which is due out on Oct. 28. While the company reported a record 9 million iPhone 5S and 5C model sales during the first weekend, this was, after all, the first time Apple Inc. (NASDAQ:AAPL) released its latest iPhone in the west and China simultaneously.”

Thanks to the iPhone backlog, 3.9 million iPhone activations remained unchanged from the second quarter. Fortunately for Verizon Communications Inc. (NYSE:VZ) and Apple Inc. (NASDAQ:AAPL), activations for the iPhone increased by 26 percent from last year’s quarter. The phones Verizon customers didn’t buy during September’s quarter were pushed over to our current quarter.

Analysts at Stifel Nicholas note:

While it is always difficult to triangulate the supply-chain data points as it relates to Apple, we believe LG Display’s reported September quarter results and December quarter guidance will be taken as a net-positive data point for Apple. LG’s Mobile and Tablet segment revenue increased by more than 56% and more than 49% sequentially in the September 2013 quarter, respectively. LG’s Mobile segment results have had a high quarterly correlation (R2 = 0.872) when compared to Apple’s iPhone shipments.

Verizon earnings

CNN Money added, “Overall, Verizon Communications Inc. (NYSE:VZ) posted a strong third quarter. Shares traded 2 percent higher Thursday after the company beat analysts’ expectations. Quarterly profit rose by 30 percent, while sales increased 4.4 percent. At this pace, the telecommunications giant is on track to make 2013 nearly twice as profitable as 2012. The good news about the lower-than-expected iPhone activations was that Verizon’s closely watched wireless service profit margin improved to 51.1 percent, well above analysts’ forecasts. Verizon’s wireless service margin typically sinks when Apple Inc. (NASDAQ:AAPL) unveils a new iPhone, as the wireless company pays Apple hefty upfront costs to purchase the devices.”

Despite this particular glitch, things are seriously looking up for Apple Inc. (NASDAQ:AAPL).