Morgan Stanley: Apple on track to build multiple new iPhone models in June-July
On a recent trip to visit with tech suppliers in Asia, Morgan Stanley's Katy Huberty received word that multiple new iPhone models will begin production the June-July timeframe.
Apple's new handsets are likely to launch around September, the analyst believes, based on her meetings in Hong Kong and Taiwan. The information aligns with a separate report published on Tuesday that claimed Sharp would begin mass production of so-called "iPhone 5S" LCD displays in June.
In addition to the anticipated iPhone 5 successor, Apple is also rumored to be working on a new low-end iPhone that would be targeted at customers who are not interested in carrier contract subsidies. Huberty's note provided to AppleInsider on Wednesday suggested that Apple could achieve strong sales of a low-end iPhone in China, even if the device were sold for above the market "sweet spot" of about $160 U.S.
As for Apple's current iPhone lineup, Huberty received word that iPhone 5 shipments are now in line with expectations. That's a change from months ago, when supply chain sources were claiming of reduced orders of the iPhone 5, and Apple Chief Executive Tim Cook even publicly said it was a mistake to attempt to decipher supply chain data.
"After a slow start, iPhone 5, is now on track to meet carrier volume expectations and iPhone 4 price cuts could stimulate incremental demand near-term," Huberty wrote. "Carriers see the opportunity for Apple to expand market coverage with 5-inch and lower-priced iPhones over time. TD-LTE licenses, and related phone launches, are expected by year-end."
Morgan Stanley has advised investors with an "overweight" rating for AAPL stock, and a price target of $540.
Apple's new handsets are likely to launch around September, the analyst believes, based on her meetings in Hong Kong and Taiwan. The information aligns with a separate report published on Tuesday that claimed Sharp would begin mass production of so-called "iPhone 5S" LCD displays in June.
In addition to the anticipated iPhone 5 successor, Apple is also rumored to be working on a new low-end iPhone that would be targeted at customers who are not interested in carrier contract subsidies. Huberty's note provided to AppleInsider on Wednesday suggested that Apple could achieve strong sales of a low-end iPhone in China, even if the device were sold for above the market "sweet spot" of about $160 U.S.
As for Apple's current iPhone lineup, Huberty received word that iPhone 5 shipments are now in line with expectations. That's a change from months ago, when supply chain sources were claiming of reduced orders of the iPhone 5, and Apple Chief Executive Tim Cook even publicly said it was a mistake to attempt to decipher supply chain data.
"After a slow start, iPhone 5, is now on track to meet carrier volume expectations and iPhone 4 price cuts could stimulate incremental demand near-term," Huberty wrote. "Carriers see the opportunity for Apple to expand market coverage with 5-inch and lower-priced iPhones over time. TD-LTE licenses, and related phone launches, are expected by year-end."
Morgan Stanley has advised investors with an "overweight" rating for AAPL stock, and a price target of $540.
Comments
I wish Apple sites would quit publishing this stuff. I know it drives page views but this isn't news. And these people don't have inside information. They just want their clients to think they do.
ROFL, thanks for confirming what Cook said two weeks ago. Last time I checked September was part of the fall. Must be a slow news day.
Quote:
Originally Posted by Rogifan
Sorry I have a hard time believing Apple suppliers would leak product plans to Wall Street analysts. Didn't we get similar supply chain reports earlier this year claiming we'd have new iPads this spring? IIRC didn't we see leaked photos of what was rumored to be the 5th gen iPad case?
I wish Apple sites would quit publishing this stuff. I know it drives page views but this isn't news. And these people don't have inside information. They just want their clients to think they do.
I don't remember the rumors (if any) about new iPads in spring, but that wouldn't have made sense to begin with. iPad 4 & iPad Mini in October, followed 6 months later by some new iPads seem illogical to me. This report passes the sanity check at least. iPhones are usually released in September, so a build up in June - July would make sense.
The nature of rumor sites are to report... rumors. There are good Apple news sites that concentrate on news only.
iPhone 4S
iPhone 5
iPhone 5S
????
I like how demand outweighing supply was considered a "slow start".
Quote:
Originally Posted by jungmark
Ugh. Apple will not sell a phone for less than $300 off contract. Apple doesn't do cheap.
I like how demand outweighing supply was considered a "slow start".
Under $300 would surprise me, too. Heck, even Google sold the Galaxy Nexus direct for $399 and the Nexus 4 (with half the memory) for $299. Apple's unlikely to sell an 8gb phone (like the base Nexus 4), so I would guess no lower than $399 for an off-contract new device.
Quote:
Sharp would begin mass production of so-called "iPhone 5S" LCD displays in June.
Why would the 5S need new displays?
Disclosure, I work at Morgan Stanley.
Quote:
Originally Posted by Michael Mangold
Why would the 5S need new displays?
It doesn't necessarily, but the supplier is new.
T'would be great if this was IGZO's time to appear.
IGZO ex machina.
Quote:
Originally Posted by Michael Mangold
Why would the 5S need new displays?
Lower power consumptions for starters. I am hoping for IGZO at last.
On another subject I saw rumors of a complete Apple TV software revamp at the WWDC. Anyone else ears about this?
Quote:
Originally Posted by Zoolook
Huberty absolutely did NOT say there would be "multiple new iPhone models", she said that iPhone 4 price cuts are expected to stimulate demand.
Disclosure, I work at Morgan Stanley.
Isn't it virtually free right now? How much more can you cut a price of $0.99?
Quote:
Originally Posted by ankleskater
Isn't it virtually free right now? How much more can you cut a price of $0.99?
$399 without having to pay inflated monthly rates to make up for the $600 carrier subsidy you're also paying for, would be much cheaper than your $0.99. Or did you really think you were getting an iPhone for $0.99
One of the biggest complaints about the iPhone earnings is due to them only releasing one model a year that the sales drop precipitously the last 2 quarters prior to a new model release. If Apple ever decided to have multiple models I can see them releasing an iPhone 5S alongside a cheaper model at the same time. But for a larger screen and pricier model I would think that would make more sense to space that about 6 months apart to keep some excitement the whole year.
A larger 4.8" iPhone example would make a bigger splash if released on it's own in the Spring while the standard and possibly a cheaper model would be released in the Autumn. This is not unlike what they used to do with the iPad. A larger iPhone release 6 months later would also likely get the next generation CPU first as an incentive to pay a higher price and also to keep them competitive with Android phones that tend to release in the Spring. The larger display would allow for more space for a CPU that might need more time to be shrunk down and optimized more for the smaller standard iPhone.
Two big iPhone releases a year spaced apart by 6 months would keep the excitement and interest level up year round. Standard sized and a separate more affordable version around September followed by a larger and more expensive version around April/May. Releasing a large iPhone right around the same time as the Samsung Galaxy S5 would take all the wind out of Samsung's sails.