Apple's iPhone 5c margins, ASP expected to push AAPL previous estimates
A new report from Morgan Stanley suggests that the iPhone 5c's better-than-anticipated margins and popularity will propel Apple past previous analyst expectations.
Source: Morgan Stanley
The report from Morgan Stanley analyst Katy Huberty adjusts Apple's expected earnings per share for the fourth quarter of 2013 upward from $7.51 to $8.00, while holding the line on the stock's 'Overweight' rating and $540.00 price target. Huberty cites higher-than-anticipated margins from the iPhone 5c, which are in turn expected to drive average sale prices for the handset from $565 to $572.
Previous estimates were predicated on the idea that Cupertino would accept tighter gross margins in order to lower the cost of the then-unannounced iPhone 5c in a bid for marketshare in developing nations like Indonesia and Brazil. Apple instead chose to position the iPhone 5c at the upper-mid level of the smartphone market, which Huberty commented on in her post-introduction note to investors on Sept. 11.
"iPhone 5c priced higher than expected," she wrote at the time, "which may limit unit upside but alleviates margin concerns and puts upward pressure on ASPs."
In her latest report, Huberty also estimates that around 3 million of the 9 million iPhones Apple sold over the weekend were iPhone 5s units, with 4 million iPhone 5c units moved. The remainder are believed to represent 1 to 2 weeks of channel inventory for Apple's retail partners.
Huberty is not alone in predicting increased earnings for Apple ? several analysts reacted positively to the company's opening weekend iPhones sales announcement, while Apple revised their own guidance upward on Monday.
Source: Morgan Stanley
The report from Morgan Stanley analyst Katy Huberty adjusts Apple's expected earnings per share for the fourth quarter of 2013 upward from $7.51 to $8.00, while holding the line on the stock's 'Overweight' rating and $540.00 price target. Huberty cites higher-than-anticipated margins from the iPhone 5c, which are in turn expected to drive average sale prices for the handset from $565 to $572.
Previous estimates were predicated on the idea that Cupertino would accept tighter gross margins in order to lower the cost of the then-unannounced iPhone 5c in a bid for marketshare in developing nations like Indonesia and Brazil. Apple instead chose to position the iPhone 5c at the upper-mid level of the smartphone market, which Huberty commented on in her post-introduction note to investors on Sept. 11.
"iPhone 5c priced higher than expected," she wrote at the time, "which may limit unit upside but alleviates margin concerns and puts upward pressure on ASPs."
In her latest report, Huberty also estimates that around 3 million of the 9 million iPhones Apple sold over the weekend were iPhone 5s units, with 4 million iPhone 5c units moved. The remainder are believed to represent 1 to 2 weeks of channel inventory for Apple's retail partners.
Huberty is not alone in predicting increased earnings for Apple ? several analysts reacted positively to the company's opening weekend iPhones sales announcement, while Apple revised their own guidance upward on Monday.
Comments
There, I'm about as reliable an Analysts as any of them.
(Then tomorrow I flip flop and say exactly the opposite.)
Yes lol, I am highly frustrating seeing these dummy Analysts on every web page I like to visit.
The expectations of utter idiots don’t count, sweetheart.
The expectations of utter idiots don’t count, sweetheart.
[anal-yst mode]
But had they only priced the 5c at 5 cents they would have sold eleventy billion!!!
[/anal-lyst mode]
Note to analyst - Increase your estimate on Apple 20%. We can't have Apple beat our estimates!!!
agreed. Although, we may hear something like.
Just how in the world would higher margins drive a higher average selling price?
Huberty doesn't even understand business 101. Why in the world would anyone pay attention to her?
Actually, I think the guidance yesterday was intended to do just the opposite. By saying that the new numbers were within the previous guidance range (albeit on the high side of that range), Cook is telling people not to get carried away with their wild predictions.
A new report from Morgan Stanley suggests that the iPhone 5c's better-than-anticipated margins and popularity will propel Apple past previous analyst expectations.
Source: Morgan Stanley
The report from Morgan Stanley analyst Katy Huberty adjusts Apple's expected earnings per share for the fourth quarter of 2013 upward from $7.51 to $8.00, while holding the line on the stock's 'Overweight' rating and $540.00 price target. Huberty cites higher-than-anticipated margins from the iPhone 5c, which are in turn expected to drive average sale prices for the handset from $565 to $572.
Previous estimates were predicated on the idea that Cupertino would accept tighter gross margins in order to lower the cost of the then-unannounced iPhone 5c in a bid for marketshare in developing nations like Indonesia and Brazil. Apple instead chose to position the iPhone 5c at the upper-mid level of the smartphone market, which Huberty commented on in her post-introduction note to investors on Sept. 11.
"iPhone 5c priced higher than expected," she wrote at the time, "which may limit unit upside but alleviates margin concerns and puts upward pressure on ASPs."
In her latest report, Huberty also estimates that around 3 million of the 9 million iPhones Apple sold over the weekend were iPhone 5s units, with 4 million iPhone 5c units moved. The remainder are believed to represent 1 to 2 weeks of channel inventory for Apple's retail partners.
Huberty is not alone in predicting increased earnings for Apple ? several analysts reacted positively to the company's opening weekend iPhones sales announcement, while Apple revised their own guidance upward on Monday.
I'm shocked, shocked!
Investment Analysts look out the window and see that Apple delivers - whatever dismal result's they erroneously, and continously, predict.
Note to "Investment Analysts": try to be professional and look at market realities rather than just writing pablum copy - we have journalists for that.
You're "out of the market"? Where do you keep your money?
In a followup statement, Katy Huberty also mentions that 4 of the 5 total Zune RT owners are also expected to preorder the Zune RT 2. A 300% gain from the original Zune RT.
You're "out of the market"? Where do you keep your money?
In a can tucked safely behind a hole in the drywall.
"At least two analysts have estimated that part of the big beat came from units of the iPhone 5C that have been shipped to other retailers – but not necessarily sold through to customers. Gene Munster of Piper Jaffray wrote on Monday that he believes about 3.5 million units of the iPhone 5C represent a “sell-in” to other retailers. Apple recognizes a sale when a customer buys a product through its own store and Web site, as well as when it ships a product to a retail partner. Munster noted that all versions of the iPhone 5C remain available on Apple’s Web site to ship within 24 hours of order."
What channel inventory? "Believed" Where did they get that one from the crack of there bums. Nobody has any iPhone 5s's. I mean nobody. These dumb asses will just not admit that there incompetent and wrong. So they make up this channel inventory b s.
To quote Apples actual press release:
Note nowhere in there does it say shipped, or shipped to channel inventory. It says "SOLD". And Apple adjusted its outlook accordingly with the SEC with there Form 8k filing.
I just don't see how these buffoons can look at themselves in the mirror in the morning and stand themselves.
What outright liars they are.
A sale to Walmart is just as much a sale as one to you personally as far as Apple's accounting is concerned. FWIW I don't believe there's any shortage of 5c's, particularly if you're not picky about the color. Check with Verizon or Sprint if you doubt it. Even a local check for the 5s shows them in-stock at Sprint in several Central Florida locations, ready and waiting for someone to take them off their hands.
There's new iPhones in the channel and yes they're counted as sales sitting on a Sprint or Walmart shelf as far as Apple is concerned.
A sale to Walmart is just as much a sale as one to you as far as Apple's accounting is concerned. FWIW I don't believe there's any shortage of 5c's, particularly if you're not picky about the color. Check with Verizon or Sprint if you doubt it. Even a local check for the 5s shows them in-stock at Sprint at least throughout various Central Florida locations, ready and waiting for someone to take them off their hands.
There's new iPhones in the channel and yes they're counted as sales sitting on a Sprint or Walmart shelf as far as Apple is concerned.
I think you can pick up any color within 24 hours.
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