In a research note, Jefferies analyst Peter Misek says Apple is going to start meaningful production on its next version of the iPhone, dubbed the iPhone 5S, later this month. "We believe total FQ4 (Sep) build plans are likely on the higher-end of our 25M-30M estimate and FQ1 (Dec) build plans remain at our 50M-55M estimate," Misek wrote in his note. He rates Apple "hold" with a $405 price target.
In recent years, Apple has unveiled the latest version of its iPhone in the fall, and 2013 appears to be no different. The phone is expected to have a 4-inch screen, the same as the iPhone 5, but also incorporate technology from Apple's AuthenTec acquisition last year, allowing people to use their fingerprint instead of inputting passwords. The next version may also have a larger, better camera, and the side buttons, which control volume, may be arranged differently.
Apple could not be immediately reached for comment for this story.What is different this year is that, in addition to the next version of the iPhone, Apple may also be announcing a low-end iPhone. This comes as it seeks to hold onto market share, with the high-end of the market seeing a slowdown in growth. Competitor Samsung has seen a slowdown in its smartphones as well, despite Google's (GOOG) Android operating system continuing to own market share in the smartphone industry. As such, Misek believes Apple is focusing more on the low-end iPhone for its fiscal quarter. "We believe the FQ1 build mix has shifted significantly towards the low-cost iPhone," Misek wrote in the note. Apple shares were slightly lower in early Monday trading, losing 0.24% to trade at $425.48. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV