iPhone 5 Launch Could Boost Apple’s Quarterly Profit, Analyst Predicts Sale Of 250 Million Units
As speculation about the reported release of the iPhone 5 reaches an all-new high, stock market analysts covering Apple are predicting that the launch will significantly boost the estimates for the September quarter.
The anticipated reveal date is September 12, while the anticipated release date is September 21, meaning that the new phone’s sales will factor into the sales for September instead of October like analysts were predicting, reports Market Watch.
On Wednesday, Gene Munster of Piper Jaffray released a report detailing his predictions for Apple’s sales of the highly anticipated iPhone 5, factoring in the knowledge that many consumers have been holding off purchasing a new iPhone in anticipation of the new model’s release.
Munster believes that Apple will sell roughly 6 to 10 million iPhone 5 units in the last two weeks of September, resulting in a boost of 8 percent to the company’s revenue over what is already anticipated. Munster added:
“While predicting the timing of the iPhone release is topical for investors, we continue to believe that whether iPhone 5 launches in the September or December quarter is largely irrelevant to the overall story, which we believe is that the new phone will be the largest consumer electronics product upgrade in history.”
Forbes notes that the coming launch could be the biggest in Apple’s history, according to FBR Capital analyst Craig Berger, who predicts that the iPhone 5 could sell up to 250 million units during its lifetime, generating more than $50 in profit per share of Apple stock. Berger writes in a research note that the launch is “one of the largest single product opportunities in Apple’s history.”
While some investors are worried about the impact of carrier policies that discourage customers from upgrading will have on sales, but Berger discounts this fear, saying that it will be offset by the fact that upgrades are usually driven more by product than eligibility status.
