An Apple a day
Canaccord Genuity Technology Analyst Michael Walkley’s research this past weekend indicated record preorders for the iPhone 5 at all three U.S. carriers. This along with solid sales of discounted legacy iPhone models at AT&T (T), Verizon (VZ) and Sprint (S) who will discount iPhone 4/4S models on Sept. 21, the initial ship date of the new phone, provide a bullsih outlook for Apple.
In fact, by Sunday, online stores for all three U.S. carriers indicated it will take 2-3 weeks to receive the new iPhone vs. it shipping by the initial Sept. 21 date. Walkley believes the extended ship date indicates record demand vs. limited supply, and his checks with stores suggest record demand. He sees the iPhone 5’s differentiated form factor vs. the iPhone 4S, improved hardware specifications including a larger 4-inch screen, A6 processor, LTE network support with improved battery, and new software capabilities introduced with iOS 6 driving strong iPhone 5 sales and extend Apple’s strong ecosystem.
Given the record pre-orders, Walkley estimates Apple could ship nine to 10 million iPhone 5 models by Sept. 29, or the last day of fiscal year 2012, vs. his initial six million estimate. He is increasing his fiscal year 2012 earnings per share estimate from $43.25 to $44.32 and his fiscal year 2013 estimate from $56.90 to $56.96. Bolstered by the iPhone 5, he believes Apple’s industry-leading software ecosystem and integrated hardware expertise will lead to a strong multi-year product cycle.
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