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

Posted:
in iPhone edited January 2014
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*"AppleÂ?s 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.
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Comments

  • Reply 1 of 27
    I know I'm a junkie when it comes to apple products, but at least I'm aware of it. ;-)
  • Reply 2 of 27
    nitronitro Posts: 91member
    i hope apple reduces the price in australia. current price is bit too high given that the AUD is exchanging higer than the USD.
  • Reply 3 of 27
    No great surprises in this report.
  • Reply 4 of 27
    mactelmactel Posts: 1,275member
    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.
  • Reply 5 of 27
    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.
  • Reply 6 of 27
    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.
  • Reply 7 of 27
    igazzaigazza Posts: 8member
    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...
  • Reply 8 of 27
    newbeenewbee Posts: 2,055member
    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.
  • Reply 9 of 27
    jakevin.jakevin. Posts: 71member
    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!
  • Reply 10 of 27
    copelandcopeland Posts: 298member
    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?
  • Reply 11 of 27
    d-ranged-range Posts: 396member
    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.
  • Reply 12 of 27
    cvaldes1831cvaldes1831 Posts: 1,832member
    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.
  • Reply 13 of 27
    jakevin.jakevin. Posts: 71member
    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.
  • Reply 14 of 27
    rcoleman1rcoleman1 Posts: 153member
    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!
  • Reply 15 of 27
    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?
  • Reply 16 of 27
    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.
  • Reply 17 of 27
    cloudgazercloudgazer Posts: 2,161member
    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.
  • Reply 18 of 27
    anonymouseanonymouse Posts: 6,653member
    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.
  • Reply 19 of 27
    dunksdunks Posts: 1,254member
    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.
  • Reply 20 of 27
    kibitzerkibitzer Posts: 1,114member
    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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