Mark Moskowitz with J.P. Morgan on Monday took a look at the larger implications of Apple's anticipated "iPhone 5" debut. He believes the entire technology "food chain" will have winners and losers as a result of Apple's latest handset.
Some of the biggest losers out of the new iPhone launch will be competing smartphone makers who have existing 4G LTE handsets on the market. Moskowitz expects that Apple's so-called "iPhone 5" will offer better battery performance in a smaller form factor that will further label competing devices as battery and pocket "hogs."
While non-Apple handset makers will be negatively affected by the new iPhone, Moskowitz also believes Apple's latest smartphone will also hurt Windows-based PC makers. The analyst said Monday that the iPhone 5 will "sustain the land grab of smartphones taking IT dollars from PCs, dampening PC-related growth prospects at Dell, Hewlett-Packard, and other PC makers."
The new iPhone is projected to mark one of the few secular growth stories for the semiconductor industry in the second half of 2012. With strong demand for the iPhone 5, companies like Fairchild Semiconductor, Qualcomm and Avago that supply components to Apple are expected to see benefits.
The new iPhone is also expected to benefit LG Display, which is believed to supply in-cell touchscreen panels; Samsung Electronics, which builds Apple's custom processors; and LG Innotek, which is believed to be supplying camera modules.
But the debut of turn-by-turn navigation in Apple's new Maps application for iOS 6 is forecast to have a negative effect on existing GPS service providers TeleNav, TeleCommunication Systems, and Garmin.
As for wireless carriers, Moskowitz expects upgrades to increase, which will have a negative effect on their margins. But in the longer term, the iPhone 5 is expected to accelerate the upgrade cycle to 4G LTE, particularly in the U.S. where the market is dominated by slower 3G phones.
As for Europe, the impact of 4G LTE is "unclear," Moskowitz said, as it is unknown whether the device will support European LTE frequencies. Regardless, he does not believe the new iPhone will be as disruptive with respect to 4G LTE in Europe.
On Monday, J.P. Morgan said massive sales of Apple's next iPhone could boost the U.S. gross domestic product. Economist Michael Feroli estimated that sales could add between one quarter and one half a percentage point to fourth-quarter annualized U.S. GDP growth in 2012.
Apple is expected to officially unveil its new iPhone on Wednesday at a media event scheduled for 10 a.m. Pacific, 1 p.m. Eastern. AppleInsider will have full, live coverage of the presentation.