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  • flipwilson728 flipwilson728 Dec 4, 2012 10:03 AM Flag

    Apple Has 'Dramatically Improved' iPhone 5 Supply

    By Patrick Seitz, Investor's Business Daily
    Posted 12/03/2012 12:58 PM ET

    Apple (AAPL) appears to have worked out the kinks in its production of the iPhone 5 and now has a "dramatically improved supply" of its sixth-generation smartphone, Canaccord Genuity analyst Michael Walkley said Monday.

    "Our November channel checks indicated very strong sales of the iPhone 5 at AT&T (T), Verizon and Sprint (S), and also in international markets, with dramatically improved supply," Walkley wrote in a research note. "Given these checks combined with Apple's strong plans for an iPhone 5 ramp to 240 carriers in 100 countries by year-end, including China on Dec. 14, we have slightly increased our above-consensus December quarter iPhone estimates."

    The research firm's November retail channel checks also indicated strong sales of the older model iPhone 4 and 4S, "with the iPhone 4 sold out at many stores."

    Walkley increased his December-quarter iPhone 5 SALES ESTIMATES TO 47.5 million units from 45 million. But he lowered his March quarter estimate to 46 million from 47.5 million.

    Given his forecast for better-than-expected iPhone sales this quarter, Walkley says Apple's December-quarter gross profit margin guidance of 36% could prove to be conservative. He is modeling 38.7% gross margin this quarter.

    Walkley has a buy rating on Apple stock with a price target of 800. Apple shares were up a fraction, near 590, in afternoon trading Monday.

    Smartphone demand looks to be great, much higher than expected, 2013 sales forecasts for IPhone 5 was expected to be at 160 million units. I am sure that target will be increased quite a bit.

    NTE will be maintaining maximum production capacity for quite a while, there is agood possibility that NTE is in discussions to increase capacity to meet higher demand?

    Sentiment: Strong Buy