They quote some guy as saying the iPhone 5S will be released on the China Mobile network in July. He cited the confidentiality agreement signed by Cook a few months ago. Maybe this is why Cook has been mum. If this is true it would be huge for stock price. Of course you have to take Seeking Alpha stuff with a grain of salt.
Grains of salt applies to all analysts. Here is the writeup on GS from a couple of weeks ago.
Comments from Goldman Sachs' China team on iPhone/iPad suppliers Hon Hai Precision and Foxconn could have implications for Apple (NASDAQ: AAPL) itself.
Goldman upgraded Hon Hai Precision from Neutral to Buy Thursday, saying it is well positioned to profit from the second stage of smartphone and tablet growth. The firm expects the production rate to recover in 2Q13E in preparation for the new product cycle of next generation iPhones and iPads.
Goldman predicts Apple's contribution to Hon Hai's revenue will grow 7% yoy in 2013. The firm sees iPhone shipments of 175 million unis in 2013 and 251 million in 2014, representing growth of 28% and 43%, respectively. They see iPad shipments of 95 million in 2013 and 120 million in 2014, representing growth of 45% and 26%, respectively. They see ASP coming down 5% for the iPhone in 2013 and 8% in 2014 and down 4% for the iPad in 2013 and 5% in 2014.
In addition to the upgrade and comments on Hon Hai, Goldman lowered estimates on another Apple supplier, Foxconn Tech, as they expect the potential plastic casing adoption in future low-cost iPhones (from metal casing for the current iPhone) to have a significant impact on its earnings. The firm cut 2013E/2014E EPS estimates by 12%/7%.
"We believe Foxconn Tech is not likely to focus on plastic casing as its edge is on metal casing while plastic casing has low entry barriers," the analyst said. "According to our sensitivity analysis, we expect +2%/-2% earnings variation from our base case in 2013E. Yet we expect the shift is to cater to market demand, which is very price sensitive. Foxconn Tech remains captive to Hon Hai and Apple demand for its metal casing business, which accounts for close to 80% of its 2013E profit, in our view."
Means nothing. China now hates aapl after the big Cook fiasco this week. They will buy competitors who don't have to apologize and have inexpensive phones. AAPL needs to reinvent the wheel again if they expect any big funds to buy again. Everyone is selling on up days and not buying on down days. The China deal is not what was expected. China is becoming the biggest market for smart phones but aapl can't win. They either sell cheap phones with no margin or they sell higher cost phones they won't buy. Can't win long term revenues don't add up. AAPL needs to sell more in the USA but competitors are eating their lunch.
Sentiment: Strong Sell
Hey gigabyte426, you are totally wrong. China Mobile has TD-CDMA network (which is China's home grown CDMA), it's a nationwide 3G network (its 4G version is still under deployment in over 100 cities in China) However TD-CDMA is incompatible with current iPhones. The solution is that Apple has to work with Qualcomm to add TD-CDMA compatible chips in the next version iPhone dedicated to China Mobile. It's widely believed that iPhone 5S will have a TD-CDMA version for China Mobile, it should in June or July.
Here is the article:
""We believe that Apple (AAPL) will launch the iPhone 5S at China Mobile (CHL) this July, as it launches the next iteration of the iPhone globally," writes Wedge Partners' Brian Blair, without elaborating on his sources. The remarks come a little less than 3 months after Apple and China Mobile signed a confidentiality agreement. Blair sees a 5S model supporting China Mobile's TD-SCDMA 3G network likely entering production in May. (WSJ report) "
Now, to lend credence to the mysterious "sources", or to draw any correlation between the confidentiality agreement and the beliefs of the mysterious "sources", let alone invest on said hearsay (especially from SA), is irresponsible.
This would certainly explain the out-of-character and immensely against-the-aapl-cultural-grain apology of the CEO to China. Perhaps a deal with the world's biggest carrier would finally turn the tide. If AAPL is really smart, this news would be a great opportunity to light an additional light under the floundering stock by announcing a massive increase to their share buyback plus a bump to their div. Let's see.