Barclays says Apple has more than doubled iPhone production

Posted:
in iPhone edited January 2014
Analysts for Barclay's Capital are reporting Monday that their contacts in the Far East tell them that Apple has doubled its iPhone production for the current quarter, suggesting the company has baked high expectations into the launch of new models that will reportedly arrive in June.



More specifically, analyst Ben Reitzes said his sources indicate Apple is readying a new iPhone that will ship in June with an upgraded camera that could deliver big improvements to the iPhone experiences, including both still and video capabilities "with possibly another camera on the front for video chat."



He elaborated by saying Apple could offer a "few iPhone models" with these features and various memory capacities as "high-end" video iPhones that would rival the functionality of Pure Digital's "Flip" digital camcorder line. At the same time, a model similar to the current iPhone 3G without some of the high-end features would be sold at lower prices ($100-$150) with different data plans in order to extend the touch-screen handset to more geographies and to lower income users, according to the report.



Reitzes is likely basing his dual model assumptions, in part, on discoveries within unreleased iPhone code that point to two new and architecturally distinct iPhone-branded devices that are far enough along in their respective development cycles to demand support within the iPhone Software 3.0 update due this summer.



He's also the second analyst in as many weeks to put out a call indicating that iPhone build volumes for the current quarter are up two-fold thanks to orders for multiple new models that would be ready for consumer purchase by the end of June.



Last week, Lazard Capital Markets semiconductors analyst Daniel Amir made similar claims, saying production was due to jump from around 3.5 - 4.0 million units during the March quarter to as many as 8 million units during the June to coincide with the introduction of two new models.



Amir said the high-end version would have video capability, a better camera and 32GB of storage while the low-end version would include less storage, no video functions, and possibly lack Wi-Fi -- a move which could potentially cater to the demands of Chinese wireless carriers.



Reitzes, who also expects Apple to introduce a new ultra-portable device to cater to the netbook market later in the year, raised his pro forma estimates for the Cupertino-based significantly given his view that the company can deliver a robust new product cycle for iPhones in '09 supporting about $10 per share in annualized free cash flow. He also bumped his price target on Apple shares to $143 from $113 while maintaining an overweight rating on the stock.
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Comments

  • Reply 1 of 61
    hope this is a good release...seems like it so far, but what I have seen is one-sided..havnt heard anything from skeptics...
  • Reply 2 of 61
    MacProMacPro Posts: 17,588member
    I am glad Barclays got their word in before RBC come out with some load of distorted information designed to hurt AAPL.
  • Reply 3 of 61
    cu10cu10 Posts: 294member
    iSight on iPhone! The world is ready Apple!
  • Reply 4 of 61
    ivan.rnn01ivan.rnn01 Posts: 1,822member
    why they all are warming all lemmings all over the world so carefully... OK, new iPhones might come in June or they might not... So, what?
  • Reply 5 of 61
    aaarrrggghaaarrrgggh Posts: 1,562member
    Don't they need 6-8 weeks for FCC approval? How much manufacturing do they do before they get approval? Other markets? Is the CE mark easier to get (not type-tested) than FCC? We should be seeing an announcement very soon if there is a June launch.
  • Reply 6 of 61
    floccusfloccus Posts: 138member
    Two (or more) models aside, a doubling of manufacturing orders could simply point to a potential deal between Apple and one of the chinese carriers. Finally gaining access to either of those markets would probably require twice as many units to fulfill demand.
  • Reply 7 of 61
    allblueallblue Posts: 393member
    Quote:
    Originally Posted by AppleInsider View Post


    ...suggesting the company has baked high expectations into launch of new models...



    Babelfish?
  • Reply 8 of 61
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by aaarrrgggh View Post


    Don't they need 6-8 weeks for FCC approval? How much manufacturing do they do before they get approval? Other markets? Is the CE mark easier to get (not type-tested) than FCC? We should be seeing an announcement very soon if there is a June launch.



    Any FCC submission would have happened by now and approval probably have been given by now, if we follow the last 2 iPhones. we know that the FCC doesn't announce submissions and will delay the posting of an approval until after a product launch.
  • Reply 9 of 61
    gyokurogyokuro Posts: 83member
    Quote:
    Originally Posted by floccus View Post


    Two (or more) models aside, a doubling of manufacturing orders could simply point to a potential deal between Apple and one of the chinese carriers. Finally gaining access to either of those markets would probably require twice as many units to fulfill demand.



    A wise statement.



    Although, many people in the states are anxiously waiting for a lower buy in cost for the iPhone experience. It's still ATT though.
  • Reply 10 of 61
    dreyfus2dreyfus2 Posts: 1,063member
    Quote:
    Originally Posted by aaarrrgggh View Post


    Is the CE mark easier to get (not type-tested) than FCC?



    The CE mark is only a mandatory declaration by the manufacturer that a product is in line with EU safety requirements ? there is no external testing involved whatsoever. You can print that mark on anything. The CE sign is not the equivalent of the FCC mark, as there is no equivalent to the FCC in Europe. There are the ERG (European Regulators Group) whose regulations are rarely binding in the member countries and national regulators and test standards.
  • Reply 11 of 61
    Quote:
    Originally Posted by AppleInsider View Post


    and possibly lack Wi-Fi ? a move which could potentially cater to the demands of Chinese wireless carriers.



    Don?t most carriers want phones to have wifi to lessen the burden on their networks?
  • Reply 12 of 61
    nasseraenasserae Posts: 3,152member
    Quote:
    Originally Posted by aaarrrgggh View Post


    Don't they need 6-8 weeks for FCC approval? How much manufacturing do they do before they get approval? Other markets? Is the CE mark easier to get (not type-tested) than FCC? We should be seeing an announcement very soon if there is a June launch.



    They can do what they did last year with the 3G iPhone. The can ask the FCC to keep the filling confidential until a certain date. Last year Apple announced the iPhone 3G the same day the FCC made the filling public.
  • Reply 13 of 61
    hypermarkhypermark Posts: 152member
    Strategically, this makes a ton of sense (the segmentation of high end/low end). Why? There are plenty of folks that only need a subset of the functionality that Apple is offering for their particular sweet spot, probably want a smaller physical footprint and don't want or can't pay for all of the extras -- especially in certain non-US geographies (China, India come to mind).



    Perhaps this goes back to Apple's warning last year about a new product release with lower margins?



    The real challenge for Apple will be matrixing all of this stuff from an iPhone OS 3.0 platform perspective, as if I am a developer, I don't want too much brain damage creating variants A, B and C of my app so that I can maximize reach to all iPhone/iPod touch owner.



    Mark

    --

    Read: ANALYSIS - iPhone 3.0 Developer Preview: Block the Kick Strategy
  • Reply 14 of 61
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by SS3 GokouX View Post


    Don?t most carriers want phones to have wifi to lessen the burden on their networks?



    That depends. On iPhone it surely benefits AT&T as the data plan is unlimited and required, so even allowing free WiFI from their hotspots benefits them. Other phones plans, even from AT&T, aren't set up to require a data plan so including WiFi may be enough to keep you from paying those premium rates for a larger dataplan, or any dataplan at all.
  • Reply 15 of 61
    It could also be the fact that there are a lot more retailers carrying the iPhone than the previous two launches: namely wal-mart and best buy (two of the biggest retailers worldwide). Apple needs to be able to supply these retailers with the new iPhone as well. I find it hard to believe they would go back to just launching the 3.0 model at AT&T & Apple Stores.
  • Reply 16 of 61
    Quote:
    Originally Posted by solipsism View Post


    That depends. On iPhone it surely benefits AT&T as the data plan is unlimited and required, so even allowing free WiFI from their hotspots benefits them. Other phones plans, even from AT&T, aren't set up to require a data plan so including WiFi may be enough to keep you from paying those premium rates for a larger dataplan, or any dataplan at all.



    Ah, good call. America ≠ the rest of the world. Though I wonder what percentage of iPhones are sold in various continents.
  • Reply 17 of 61
    smilingoatsmilingoat Posts: 153member
    is there an article out there that is pretty much a list of all the new features that the iPhone will have/might have?



    i knew a few things here and there, but i really dont have the time to go through every little article on the internet. i know its not been officially announced, so really its all just speculation. however im planning to buy one, hopefully, release day.



    well under 2 conditions. 1. the prices dont increase for monthly service (TxT messaging should be included with data plan... but im not counting on that) 2. price of the handheld WITHOUT a new contract is not $600+. the tech is getting old (even if its still brilliant) you know it does not cost them a lot to produce it anymore...
  • Reply 18 of 61
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by SmilinGoat View Post


    is there an article out there that is pretty much a list of all the new features that the iPhone will have/might have?.



    No, all we know are the official SW announcements and SDK changes that will open up many doors. Everythign else is just speculation. Faster and newer ARM CPU, much better GPU, more integration of chips, perhaps PA Semi tech involved (finally), better camera, double the resolution display and more RAM (hopefully), faster HSDPA and inclusion of HSUPA, and 802.11n



    Quote:

    2. price of the handheld WITHOUT a new contract is not $600+. the tech is getting old (even if its still brilliant) you know it does not cost them a lot to produce it anymore...



    I see no reason to expect Apple to use the same HW as they did for the last two builds. Remember that Apple had no cellphone for sale less than 2 years ago and that there was no competition for touchscreen media-phones like there will be emerging this year. Apple still has some things that others can't match, like capacitance multitouch screens and the iPhone/Mac ecosystem but the competition will be a lot more fierce.
  • Reply 19 of 61
    addaboxaddabox Posts: 12,660member
    The problem with this kind of "analysis" is that it is informed by no more information than the average rumor site, and sets up exactly the kind of expectations that gets Apple knocked around after every product release.



    So what if Apple simply brings out a new phone at the current price points, with memory bumps, a slightly more powerful processor and the 3.0 OS, including some as yet unrevealed UI enhancements?



    We'll have to hear about how Apple fucked us all over by "failing" to deliver on some kind of video wonder thing, how they're really "falling behind" and how Apple is doomed because they no longer know how to "innovate" or "lead." Stock prices will tumble, Pre and Android fans will smirk and chortle, and the tech press will run endless stories wondering "what's wrong with Apple."



    All because of speculation and rumor. We've already heard an explicit description about how easy it is to manipulate Apple stock prices, simply by setting expectations unreasonably high so that what they actually do is forever seen as "disappointing."



    If Apple releases a phone that rivals the Flip for video, that'll be great. But I certainly am not going to lose my shit if they don't, because the guy that says they might doesn't know anything we don't.



    And guess what? A memory bumped phone with a more powerful CPU and what we've already been shown of the new OS will be a kick-ass phone, and sell really well. It's only compared to imaginary phones that such releases ever seem disappointing.
  • Reply 20 of 61
    smilingoatsmilingoat Posts: 153member
    Quote:
    Originally Posted by solipsism View Post


    I see no reason to expect Apple to use the same HW as they did for the last two builds. Remember that Apple had no cellphone for sale less than 2 years ago and that there was no competition for touchscreen media-phones like there will be emerging this year. Apple still has some things that others can't match, like capacitance multitouch screens and the iPhone/Mac ecosystem but the competition will be a lot more fierce.



    HW?



    anyway, yeah, you are right about the competition gearing out, with several android phones and a handful of other touch screen phones... i just dont know if any of them will be able to get the attention the iPhone gets, which *could* mean that apple wont feel a threat from them.



    either way i hope that the network charges are lower (i know this is up to ATT) because my bill is constantly over $100, with the the lowest minute plan available. its just nickels/dimes past that.



    im surprised to see rumors of upgraded cpu/gpu, this isnt supposed to be a model that handles new/advanced apps is it?



    im mostly just excited for turn by turn GPS, 32GB, and picture messages... everything else is just icing.
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