Analyst: New iPhones Could Invigorate Apple’s Current Quarter
Although Apple (NASDAQ:AAPL) is expected to unveil two new iPhone models at its upcoming media event on September 10, most Apple watchers don’t expect the new iPhones to be available until around September 20. For this reason, most analysts think that the new iPhones will have a minimal impact on Apple’s fiscal fourth quarter.
However, Pacific Crest analyst Andy Hargreaves begs to disagree. In a note to investors obtained by AllThingsD’s John Paczkowski, Hargreaves wrote that he believes Apple could sell 10 million new iPhones before the end of the current quarter on September 29.
Assuming the September 20 availability date is correct, this would mean that Apple would have to sell 10 million new iPhones in nine days. Including the old models, the analyst expects Apple to sell a total of 31 million iPhones in the fiscal fourth quarter. This would be slightly less than the previous quarter, when Apple sold a total of 31.2 million iPhones.
Like most analysts, Hargreaves thinks that the impact from the new iPhones will mostly be seen in the following quarters. The analyst expects Apple to sell 50 million iPhones in its fiscal first quarter, reports AllThingsD. However, Hargreaves also believes that Apple could easily top this number if it signs distribution deals with China Mobile (NYSE:CHL) and NTT DoCoMo (NYSE:DCM).
China Mobile is the world’s largest carrier with over 700 million subscribers, while DoCoMo is Japan’s largest carrier with over 60 million subscribers. DoCoMo CFO Kazuto Tsubouchi recently sparked rumors of an impending deal with Apple after he stated that not having a deal with the iPhone maker “doesn’t make business sense.”
Meanwhile, rumors of a China Mobile-Apple deal continue to swirl after multiple meetings between Tim Cook and China Mobile Chairman Xi Guohua in Beijing. Apple may announce a distribution deal with China Mobile when it holds a separate iPhone premiere in Beijing on September 11. According to AllThingsD, Hargreaves also believes that a China Mobile deal could add $3 to Apple’s EPS in fiscal 2014.
Here’s how Apple closed out the trading week.
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