Suppliers say Apple will build first 3M CDMA iPhones in December
Apple is expected to build its first 3 million Verizon-compatible CDMA iPhones in December 2010, contacts in the company's overseas supply chain reportedly indicated.
Analyst Jeffrey Fidacaro with Susquehanna Financial Group said in a note to investors on Wednesday that checks with overseas suppliers indicated Apple is prepared to build 3 million CDMA iPhones in December, keeping the device on track for an early 2011 launch. That would put total GSM and CDMA iPhone production for the quarter at between 21 million and 22 million.
For the current quarter, suppliers reportedly said that Apple is set to build between 18.2 million and 18.4 million GSM-only iPhones. Fidacaro noted those numbers are "well above investor expectations," because display panel constraints with LG Display have been resolved.
Fidacaro expects Apple to sell a record 11.6 million iPhones in the fourth quarter of the company's fiscal 2010. That would be a 39 percent increase from the 8.4 million handsets the company sold in the third quarter of fiscal 2010.
"We expect the September 25 launch of iPhone in China and Apple's target of making the iPhone available in 88 countries by month end to aid results in 4QFY10," he wrote. "Our checks show that Apple is still struggling with yields on the mass production of the white iPhone 4."
As for the iPad, suppliers were said to have plans to build 7 million units for the current quarter, a 56 percent increase from the previous three-month frame. Fidacaro expects Apple to ship 4.75 million units int he current quarter, which would be 45 percent growth from last quarter, to reach a total of 13.4 million units in calendar 2010.
In addition, MacBook build rates are said to be at more than 3 million for the quarter, while production forecasts for the newly refreshed iPod lineup are at 12 million. Fidacaro also expects a "modest" start for the new Apple TV, with several hundred thousand units built at launch, ramping up to about a million units in December.
"While the lower price point, Netflix integration, and better streaming (AirPlay) functionality makes the product more compelling than the original device, expectations remain low, in our view," he said.
Susquehanna Financial Group has a positive rating for AAPL stock, and has maintained its $365 price target.
Earlier this year, before the iPad was announced, Fidacaro conducted an assumed component breakdown on the then-mythical device, projecting it to include a 4200RPM spinning hard drive and an Intel Atom mobile processor.
Analyst Jeffrey Fidacaro with Susquehanna Financial Group said in a note to investors on Wednesday that checks with overseas suppliers indicated Apple is prepared to build 3 million CDMA iPhones in December, keeping the device on track for an early 2011 launch. That would put total GSM and CDMA iPhone production for the quarter at between 21 million and 22 million.
For the current quarter, suppliers reportedly said that Apple is set to build between 18.2 million and 18.4 million GSM-only iPhones. Fidacaro noted those numbers are "well above investor expectations," because display panel constraints with LG Display have been resolved.
Fidacaro expects Apple to sell a record 11.6 million iPhones in the fourth quarter of the company's fiscal 2010. That would be a 39 percent increase from the 8.4 million handsets the company sold in the third quarter of fiscal 2010.
"We expect the September 25 launch of iPhone in China and Apple's target of making the iPhone available in 88 countries by month end to aid results in 4QFY10," he wrote. "Our checks show that Apple is still struggling with yields on the mass production of the white iPhone 4."
As for the iPad, suppliers were said to have plans to build 7 million units for the current quarter, a 56 percent increase from the previous three-month frame. Fidacaro expects Apple to ship 4.75 million units int he current quarter, which would be 45 percent growth from last quarter, to reach a total of 13.4 million units in calendar 2010.
In addition, MacBook build rates are said to be at more than 3 million for the quarter, while production forecasts for the newly refreshed iPod lineup are at 12 million. Fidacaro also expects a "modest" start for the new Apple TV, with several hundred thousand units built at launch, ramping up to about a million units in December.
"While the lower price point, Netflix integration, and better streaming (AirPlay) functionality makes the product more compelling than the original device, expectations remain low, in our view," he said.
Susquehanna Financial Group has a positive rating for AAPL stock, and has maintained its $365 price target.
Earlier this year, before the iPad was announced, Fidacaro conducted an assumed component breakdown on the then-mythical device, projecting it to include a 4200RPM spinning hard drive and an Intel Atom mobile processor.
Comments
Earlier this year, before the iPad was announced, Fidacaro conducted an assumed component breakdown on the then-mythical device, projecting it to include a 4200RPM spinning hard drive and an Intel Atom mobile processor.
*snort*
Show how reliable this is, then, doesn't it?
Earlier this year, before the iPad was announced, Fidacaro conducted an assumed component breakdown on the then-mythical device, projecting it to include a 4200RPM spinning hard drive and an Intel Atom mobile processor.
It says a lot about this guys grasp of technology!
I'm curious to know how many people have been waiting for Verizon to pick up the iPhone. I've personally been hanging in there with my 3G device long enough, just waiting for this moment.
Hard to say. According to the media, millions are waiting. According to the Apple Insider forum, few will switch because AT&T's service is terrific, just like the outside antenna that picks it up.
Any word on whether Sprint might get the iPhone? Everyone seems to only talk about Verizon when Sprint uses the same CDMA tech so it would be trivial for the iPhone to come to both.
While a Verizon iPhone would help sales, I don't know if Apple and Verizon can come to an agreement. Verizon loves to load up their garbage on phones. CDMA versions could be for China/Sprint.
I'm curious to know how many people have been waiting for Verizon to pick up the iPhone.
No one what-so-ever outside of the US. GSM is the world standard. Even in places that use CDMA, the iPhone tends to be available on UTMS/HSDPA (the GSM 3G standard.) Really, Apple will pick up some users in the US, but outside of the US the validity of a CDMA device is pretty shakey. We don't even *have* CDMA networks in Europe. Your CDMA phones are therefore "pretty" bricks.
Sprint is more likely to give complete control of the iPhone to Apple than Verizon.
I'm curious to know how many people have been waiting for Verizon to pick up the iPhone. I've personally been hanging in there with my 3G device long enough, just waiting for this moment.
Me. Won a first gen iPhone on Day One 2007. I've used it as everything but a phone ever since. I've kept my Verizon flip-phone that I got in 2006 and will use it and nothing but it until
1. Verizon shuts off its CDMA network and I'm forced to get a new phone.
2. The iPhone gets CDMA/LTE hardware.
Or, if AT&T would happen to bring wireless service to my part of the world, I would even consider switching to AT&T to get the iPhone.
I'm not sure how much of a chance either one of these scenarios will pan out - probably slim to none?
I have no signal at work (I work on a military base), and poor signal at home. My internet is 3G; but the transfer rate is in the EDGE data rate range. I can go to the Salt Lake International Airport and not get internet service at all. Yeah, I'm serious. No freakin' internet coverage at a major Delta Airliens hub - at an International airport.
There is incompetence, and there is utter incompetence. AT&T is utterly incompetent. When I flew to DC last weekend, to visit family that lived out in the rural areas - my internet speeds were faster than they have ever been in Utah. It was like a totally different iPhone. The internet worked, and it worked well.
Now I'm back home, and my co-workers with Verizon not only have fantastic coverage - their internet blows AT&T away - and not by a small amount.
So, I left Verizon after 15 years because I wanted the iPhone. I've had more dropped calls in any given week with AT&T, than I had in 15 years with Verizon. Where Verizon rarely was in an area without coverage, AT&T is rarely useable.
So, I'm eagerly waiting for Verizon to pick up the AT&T; and I have my $350 that I"m more than willing to jam up AT&T's a**.
No one what-so-ever outside of the US. GSM is the world standard. Even in places that use CDMA, the iPhone tends to be available on UTMS/HSDPA (the GSM 3G standard.) Really, Apple will pick up some users in the US, but outside of the US the validity of a CDMA device is pretty shakey. We don't even *have* CDMA networks in Europe. Your CDMA phones are therefore "pretty" bricks.
When people post worldwide CDMA numbers they really should exclude networks, like South Korea, that have CDMA for ?2G? and UMTS for ?3G?. The real question is how many subscribers worldwide only have CDMA2000 for ?3G?.
IF true .... APPL will pass 300 soon. However, I will believe it when I see them.
I would expect a 8-10% jump in the market with 5-6% of that holding strong the next day, just on an official announcement.
Some may switch, only to switch back. Obviously people who can't get good connectivity from AT&T can and should switch. It's just too bad they won't get all the features that an AT&T iPhone has.
When people post worldwide CDMA numbers they really should exclude networks, like South Korea, that have CDMA for ‘2G’ and UMTS for ’3G’. The real question is how many subscribers worldwide only have CDMA2000 for ‘3G’.
How much of the world is covered by UMTS/3G? I don't believe the percentage is high enough to expect a phone to work without a 2G option and, yes, there are millions and millions of subscribers outside the USA who are on a CDMA network.
Last I heard, you can't talk and use the web at the same time on a CDMA phone. Is this still the case? As one of those rare people who gets great coverage from AT&T where I live and work, why would I want to switch to Verizon and lose this cabability?
Some may switch, only to switch back. Obviously people who can't get good connectivity from AT&T can and should switch. It's just too bad they won't get all the features that an AT&T iPhone has.
The speculation is Verizon will upgrade their network to support simultaneous voice and data like a 3G GSM network does. The technology is there it's just that Verizon hasn't implemented it (yet). Some will say that Apple may have demanded Verizon go forward with this if they want to have the iPhone. Time will tell.
How much of the world is covered by UMTS/3G? I don't believe the percentage is high enough to expect a phone to work without a 2G option and, yes, there are millions and millions of subscribers outside the USA who are on a CDMA network.
That is the point I just addressed with my South Korea example. The iPhone will only work on their 3G network. There is no fall back to their ‘2G’ network as it’s CDMA with no GSM. But that isn’t an issue as their UMTS offers full coverage. Hence, for those making an argument that CDMA supports x-many subscribers is an erroneous metric as the ‘3G’ subscriber base is what should be measured.