According to an Apple investment banker, Apple Inc. will start the production of the fifth generation iPhones, the iPhone 5, by mid-August before its planned launch at the end of third quarter. This revelation came after Morgan Stanley expert Katy Huberty met some unidentified individuals in Taiwan last week, where Apple’s manufacturing industry is locate. Rumors of a new iPhone started in early June when WWDC 2011 concentrated on software announcement, and grew strong after suppliers hinted of new orders from Apple regarding a new product.
She reported with confidence that Apple’s next iPhone will begin its production from mid to late August and will market it aggressively in the fourth quarter of the calender. She further remarked that as far as she knows, the new iPhone will be introduced and be made available to customers around September, the end of third quarter of the calendar year.
Huberty however, changed the company’s third quarter estimates by 2 million iPhones and shifted it to its fourth quarter estimates due to the late launch. It is to be noted that Apple traditionally introduces revamped iPods in the month of September. The company’s full year figure of 72 million units will be unchanged though. Experts are of the opinion that if Apple will bring out the iPhone by early September, it will drive Morgan Stanley’s revised approximates northwards. Apple is also in talks with the suppliers to reduce the prices of spare parts. It has asked its suppliers of battery, touch panel, optical accessories to reduce the price by 10%. If successful, the company will record substantial increase in earnings of September.
Sources have also revealed progress on the previously reported mid-segment, low priced iPhones and as recent reports suggest, a TV of Apple’s brand. Apple has predicted a sizeable increase in iPhone units in 2012. It is attributed to possibly low price points and new products. It is believed that Apple will try to make the most of the emerging markets of Asia and Europe, where prepaid service and low priced smartphone are growing very popular. It may come as no surprise if two versions of iPhone, the standard and the low priced one, are launched together.
According to Huberty, Apple is also in the initial stages of producing a TV, specifically the concept and design phase. If Apple does introduce an Apple TV, it will add about $19 billion to annual revenue and EPS in the long run. The earliest reports about this came in March when an analyst suggested that Apple is brainstorming over a Smart TV model.
