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Apple Inc. Message Board

  • michalisrael157 michalisrael157 Dec 22, 2013 11:03 PM Flag


    Apple Inc. (AAPL) PT Boosted By Stifel On China Mobile iPhone Deal

    by ValueWalk StaffDecember 22, 2013
    Stifel: Apple Inc. (NASDAQ:AAPL) Announces iPhone 5s/5c Support at China Mobile. Apple has officially announced a multi-year agreement to have the iPhone supported by China Mobile; focus on China Mobile’s 4G TD-LTE rollout/ramp throughout 2014-beyond. As we and many others have reported over the past few years, Apple’s ability to have the iPhone supported by China Mobile would be an important growth driver; albeit the terms (i.e., subsidy arrangement) of this deal are not yet disclosed. This comes quickly after China Mobile’s official 4G TD-LTE launch last week. China Mobile will commence retail availability of the iPhone on January 17, 2014 and offer pre-registration via the company’s website on 12/25. We retain our estimate of incremental EPS from a ramp at China Mobile could total in the $4-$8/sh. range after the first 12-months of support. We are not changing our forward estimates; however, our model leaves us to think about the potential for up to +10M incremental iPhone sales to materialize into the March 2014 quarter. We note that after the China Telecom iPhone launch in March 2012, Apple’s estimated China iPhone shipments [sell-in] sequentially increased by ~3.6M to ~5.7M in C1Q12; China Mobile’s 3G subscriber base currently stands at ~4x that of China Telecom upon initial iPhone support. We move our target price from $600 to $650, or 8.6x EV/EBITDA on our C2014 estimates (not yet reflective of China Mobile ramp).On Sunday night, Apple Inc. (NASDAQ:AAPL) announced that it had inked a deal with China Mobile Ltd. (NYSE:CHL) (HKG:941). Many investors believe that the deal could be accretive to Apple earnings and share price. Already at least one analyst is out with a new report analyzing the deal. Aaron C. Rakers, CFA of Stifel has issued a new note on the topic. He believes that Apple Inc. (NASDAQ:AAPL) could sell 10 million extra iPhones due to the new

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