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Apple to begin assembling iPhone 5 'in mid to late August' - report

post #1 of 28
Thread Starter 
Apple will begin production of fifth-generation iPhones in August ahead of a projected late third quarter launch, according to intelligence obtained by one investment banker's recent trip to Taiwan.

After meetings with unnamed individuals in Taiwan last week where Apple's supply chain and manufacturing facilities reside,Â*Morgan Stanley analyst Katy Huberty issued a note to clients in which she confidently stated:Â*Â*"AppleÂs next iPhone will begin production in mid to late August and ramp aggressively" into the calendar fourth quarter.

She added that, based on her intelligence, the new handset will launch and be available to consumers sometime near the end of the third calendar quarter of the year, which ends September.

As a result of the later than usual launch, Huberty shifted 2 million iPhone units from the firm's third quarter estimates to its fourth quarter estimates, though the firm's full year estimate of 72 million units remain unchanged. However, the analyst notes that if the next iPhone were to come out in early September, it would "drive upside" to Morgan Stanley's lowered estimates.

Lower priced iPhones and an Apple-branded TV may also be in the works, Huberty noted. According to the analyst, Apple is forecasting a large iPhone unit increase in 2012 "on the back of new products and potentially lower price points." Various major news outlets reported this spring that Apple is planning a cheaper iPhone model, which analysts believe would help the company make gains in emerging and prepaid mobile markets.

"We also believe Apple is in the early design stages for a TV, which could add $19 billion and $4.50 of annual revenue and EPS longer-term," Huberty continued. In March, the analyst reported that checks in Asia suggested Apple was working on a "Smart TV prototype." Earlier this week, an unverified report claimed to leak Apple's plans for iOS-powered connected TVs, citing a "former Apple executive" as the source.



In addition to Apple's ramping up of iPhone production, Morgan Stanley sees upward pressure on iPad shipments as post-Japan earthquake product constraints have subsided. Huberty also echoed reports that improved component supply has led Apple to negotiate price cuts with some of its suppliers. Those cuts could boost margins "modestly in the June quarter and more in September," the note read.

A recent report out of Asia said Apple has demanded 10 percent price cuts from iPad suppliers as orders increase. The report specifically cited companies supplying printed circuit boards, optical components, battery modules and touch panels as being pressured to lower prices.

Huberty sees the recent dip in Apple's share price as a buying opportunity for investors in light of the prospect of improved shipments of the iPhone and iPad. Morgan Stanley reiterated its Overweight rating of Apple, with a price target of $428. The company's stock has slide more than 6 percent to $326.35 since the beginning of June.
post #2 of 28
I know I'm a junkie when it comes to apple products, but at least I'm aware of it. ;-)
post #3 of 28
i hope apple reduces the price in australia. current price is bit too high given that the AUD is exchanging higer than the USD.
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post #4 of 28
No great surprises in this report.
post #5 of 28
Nothing new here. We'd expect Apple to start production close to their fall release of new products.

What isn't mentioned and missed by the rumor mill is that something else unknown to everyone is going on. Apple must have something major to release in the new iPhone and iPod Touch. I haven't seen rumors on the iPod Touch as of late. I'd imagine that the iPhone 5 will have LTE support. As for the iPod Touch, maybe a bigger form factor or a good price drop.
post #6 of 28
Quote:
Originally Posted by nitro View Post

i hope apple reduces the price in australia. current price is bit too high given that the AUD is exchanging higer than the USD.

Apple can't control price in every country because of TAXES. Blame your government instead.
post #7 of 28
Quote:
Originally Posted by makingdots View Post

Apple can't control price in every country because of TAXES. Blame your government instead.

Actually Australia's government imposes a 10% Goods and Services Tax (GST) on all products.

Apple's 16GB iPhone costs US$649
In Australia this costs AU$859 or US$894.99

So if you add our GST to the US Price you get US$713.90 or AU$685.19
Giving you the Australian price before shipping.

And hence, even with shipping, the phone is grossly over-priced in Australia especially when you consider our increasing currency value.
post #8 of 28
Quote:
Originally Posted by nitro View Post

i hope apple reduces the price in australia. current price is bit too high given that the AUD is exchanging higer than the USD.

so sick of hearing about this...
post #9 of 28
Quote:
Originally Posted by jakevin. View Post

Actually Australia's government imposes a 10% Goods and Services Tax (GST) on all products.

Apple's 16GB iPhone costs US$649
In Australia this costs AU$859 or US$894.99

So if you add our GST to the US Price you get US$713.90 or AU$685.19
Giving you the Australian price before shipping.

And hence, even with shipping, the phone is grossly over-priced in Australia especially when you consider our increasing currency value.

There are tariffs and other "border crossing taxes" to consider before even starting to add GST ..... none of which are controlled by Apple.
Apple is not Appl ...... Please learn the difference!    
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Apple is not Appl ...... Please learn the difference!    
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post #10 of 28
Quote:
Originally Posted by newbee View Post

There are tariffs and other "border crossing taxes" to consider before even starting to add GST ..... none of which are controlled by Apple.

Yes, yes, I understand there are many costs involved which are not controlled by Apple but I still think that Apple can redue Australian prices across the board like they have attempted to do with the Magic Mouse, Wireless Keyboard and Trackpad which all went from $99 to $79 a short time ago...

It's not a big deal at the end of the day. You're getting a quality product for a slightly higher price - I think that's worth it but we all like discounts!
post #11 of 28
Quote:
Originally Posted by AppleInsider View Post

Morgan Stanley reiterated its Overweight rating of Apple, with a price target of $428. The company's stock has slide more than 6 percent to $326.35 since the beginning of June.

Has anybody a good idea why Apple is sliding although all analysts are giving it an overweight rating with price targets going even to the 500s?
post #12 of 28
Quote:
Originally Posted by LanPhantom View Post

I know I'm a junkie when it comes to apple products, but at least I'm aware of it. ;-)

I'm an Apple junkie as well, but I'll have to see first what they come up with if they launch their own HDTV set. Just looking at the huge variety in quality between TV sets (even from the same manufacturer) I think it would be pretty hard for Apple to release a decent HDTV out of nowhere. Even the higher-end sets from big names in TV, (Samsung, Philips or LG, etc) have all kinds of downsides. I'm not going to trade in my Panny plasma TV for a sub-standard Apple LCD without local dimming or with light leaks for example, that's for sure.
post #13 of 28
Katy Huberty's track record is incredibly horrible.

Whatever she predicts is typically wrong. I recommend AI readers to take a moment to thoroughly research her history and to take pause into these postings.

AI is not contributing to the well of thoughtful Apple discourse when it quotes Huberty, Shaw Hu, Gene Munster, and certain other analysts. They aren't star-rated and thus do not qualify as reputable sources of information or speculation.
post #14 of 28
Quote:
Originally Posted by cvaldes1831 View Post

Katy Huberty's track record is incredibly horrible.

Whatever she predicts is typically wrong. I recommend AI readers to take a moment to thoroughly research her history and to take pause into these postings.

AI is not contributing to the well of thoughtful Apple discourse when it quotes Huberty, Shaw Hu, Gene Munster, and certain other analysts. They aren't star-rated and thus do not qualify as reputable sources of information or speculation.

Still regardless of alleged leaks or 'reports', it is quite apparent that Apple would begin iPhone production in August as we are almost certain of a Fall release alongside iOS 5.

In relation to the HDTV comments in the article, I believe it makes perfect sense that it is indeed the next focus for Apple once it's thoroughly implemented the iPad as it did with Mac, then iPod, then iPhone. When that focus will begin to dominate is not as clear.
post #15 of 28
Quote:
Originally Posted by Joseph L View Post

It will have LTE, NFC and a slim, teardrop form factor. A bigger screen, and a screaming dual core processor. Lots longer battery. Lighter.

None of the Android phones will even come close until NEXT fall.

With those new features I'm waiting to get my hands on one already!
post #16 of 28
Quote:
Originally Posted by Joseph L View Post

It will have LTE, NFC and a slim, teardrop form factor. A bigger screen, and a screaming dual core processor. Lots longer battery. Lighter.

None of the Android phones will even come close until NEXT fall.

How do you know all this, or is it your chrystal ball? And what about a new antenna design?
post #17 of 28
Quote:
Originally Posted by LanPhantom View Post

I know I'm a junkie when it comes to apple products, but at least I'm aware of it. ;-)

it's funny, a few months ago i was in the market for a new tv. i kept thinking, i wish Apple made one. if they made a 40-46" cinema display it'd be perfect. but i ended up going for a 40" sony.
it's nice, but not as pretty as Apple would have made it. people kept telling me that all tvs look the same, but it's amazing how bad some of these companies can make a screen look.

anyway... i suppose if Apple did make one, it'd be out of my price range. lol.
post #18 of 28
Quote:
Originally Posted by copeland View Post

Has anybody a good idea why Apple is sliding although all analysts are giving it an overweight rating with price targets going even to the 500s?

  • Concern about Steve Job's health
  • Concern about copycat competitors eroding their margins.

Those would be my two guesses anyway - remember Investors aren't always rational.
post #19 of 28
Quote:
Originally Posted by foxhunter101 View Post

How do you know all this, or is it your chrystal ball? And what about a new antenna design?

Joseph L is a serial troll previously banned under several other aliases, including iLuv. His MO is to post ridiculously gushing "pro Apple" nonsense.
post #20 of 28
Quote:
Originally Posted by jakevin. View Post

Actually Australia's government imposes a 10% Goods and Services Tax (GST) on all products.

Apple's 16GB iPhone costs US$649
In Australia this costs AU$859 or US$894.99

So if you add our GST to the US Price you get US$713.90 or AU$685.19
Giving you the Australian price before shipping.

And hence, even with shipping, the phone is grossly over-priced in Australia especially when you consider our increasing currency value.

I hope I can shed some light on this issue.

Apple seldom adjusts the pricing on their products mid cycle.

The international iPhone pricing was set last July when the American dollar was much stronger against the Australian dollar than it is now.

The good news is that this will be adressed when the iPhone 5 releases later this year.
post #21 of 28
Quote:
Originally Posted by cvaldes1831 View Post

Katy Huberty's track record is incredibly horrible.

Whatever she predicts is typically wrong. I recommend AI readers to take a moment to thoroughly research her history and to take pause into these postings.

AI is not contributing to the well of thoughtful Apple discourse when it quotes Huberty, Shaw Hu, Gene Munster, and certain other analysts. They aren't star-rated and thus do not qualify as reputable sources of information or speculation.

Totally agree. Hubert's quarterly estimates are usually pitiful - consistently low by at least 10 percent and often as much as 15.

http://tech.fortune.cnn.com/2011/04/...iss-by-a-mile/

How does she keep her job? With her good looks?

http://www.morganstanley.com/institu...pdf/MS_NAR.pdf

Or maybe there's some other reason ...

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post #22 of 28
Why wait until August to start making these phones, if you have the design locked in place start making them now.

Who knows maybe that way Apple would actually have enough phones for launch and we won't have to have the usual "wow, demand is so much higher than we anticipated" bullshit.
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post #23 of 28
Quote:
Originally Posted by cloudgazer View Post

  • Concern about Steve Job's health
  • Concern about copycat competitors eroding their margins.

Those would be my two guesses anyway - remember Investors aren't always rational.

Wow.

You've jumped from being an expert on all things antitrust to being a stock market guru now!?
post #24 of 28
Quote:
Originally Posted by Joseph L View Post

It will have LTE, NFC and a slim, teardrop form factor. A bigger screen, and a screaming dual core processor. Lots longer battery. Lighter.

None of the Android phones will even come close until NEXT fall.

Sounds like a wish list to me. Most of this sounds really great, though I'm really not sure what a "teardrop form factor" is?

My guess would be LTE is not going to happen this time around, but probably pretty likely for next year. I think I remember hearing something that Apple is NOT going to have NFC ready for this year either, but that may have been just more speculation also. Of course the new iPhone will have a processor bump but just how much faster is anyone's guess, my guess is incremental and not anything like the 3G to 3GS. The bigger screen seems to have lots of rumor mill support, and I'm hoping for this one myself. I doubt the "lots" part of the longer battery, but that would be seriously nice too.

Personally, my 3GS is ready for replacement. I'm definitely ready for the 5 to come out and I'll be ordering mine the day it's available on the Apple Store. I'm certainly not going to go stand in line for 10 hours like I did to get my wife her iPhone 4. Especially since with the iPhone 4 release people were getting their ordered phones a day or 2 before the actual release.
post #25 of 28
Quote:
Originally Posted by saarek View Post

Why wait until August to start making these phones, if you have the design locked in place start making them now.

Who knows maybe that way Apple would actually have enough phones for launch and we won't have to have the usual "wow, demand is so much higher than we anticipated" bullshit.

I think the manufacturing process is just a bit more involved than you are making it seem. I'm sure that lots of parts are already in the manufacturing process for the new iPhone 5. I'm would guess that final assembly is scheduled to being in August and this probably has a lot to do with QA of components and having enough of those components on-hand to actually feed the assembly lines. There are probably also issues with current contracts for existing iPhone 4 orders, and who knows what all else.

I have a feeling that if Apple announced today that they had been manufacturing the new iPhone 5 for the past 3 months and they already have 10 million units in stock to avoid any launch day surprises you would be one of the first people to complain about, "If they have so many on-hand why don't they start selling them already?" They have to find a balance between having enough to meet projected initial demand while at the same time not having a truly absurd amount of product just sitting on the shelf. Apple is a highly successful company and I'm pretty sure that they have a much better understanding of their manufacturing supply chain than any of us armchair quarterbacks.
post #26 of 28
Source?

Or is this just wishful thinking?

Quote:
Originally Posted by Joseph L View Post

It will have LTE, NFC and a slim, teardrop form factor. A bigger screen, and a screaming dual core processor. Lots longer battery. Lighter.

None of the Android phones will even come close until NEXT fall.
post #27 of 28
Quote:
Originally Posted by nitro View Post

i hope apple reduces the price in australia. current price is bit too high given that the AUD is exchanging higer than the USD.

Time for a vacation to the states mate. Come on over and spend some of those Aussie dollars over here. Pick up an unlocked iPhone at the Apple store here in the US.

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post #28 of 28
Quote:
Originally Posted by svnipp View Post

Sounds like a wish list to me. Most of this sounds really great, though I'm really not sure what a "teardrop form factor" is?

My guess would be LTE is not going to happen this time around, but probably pretty likely for next year. I think I remember hearing something that Apple is NOT going to have NFC ready for this year either, but that may have been just more speculation also. Of course the new iPhone will have a processor bump but just how much faster is anyone's guess, my guess is incremental and not anything like the 3G to 3GS. The bigger screen seems to have lots of rumor mill support, and I'm hoping for this one myself. I doubt the "lots" part of the longer battery, but that would be seriously nice too.

Personally, my 3GS is ready for replacement. I'm definitely ready for the 5 to come out and I'll be ordering mine the day it's available on the Apple Store. I'm certainly not going to go stand in line for 10 hours like I did to get my wife her iPhone 4. Especially since with the iPhone 4 release people were getting their ordered phones a day or 2 before the actual release.

From everything I've read on iPhone 5 (4S), NO LTE, NO NFC (for now). It will have the new A4 processor, maybe bigger screen, longer battery life would be nice, PLEASE a new antenna, PLEASE lighter (no glass back).

My 3GS is also ready for replacement (although I will say, I've been very happy with it). I tried an iPhone 4 but had severe reception problems and had to return it. So I'm ready for the new phone.......bring it on...!!!
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