Last Monday, investment firm Jefferies sent Apple’s stock down by cutting its price target from $900 to $800. However, the financial group also predicted that the Cupertino-based company will launch a new iPhone and iPad as early as June 2013, followed by an Apple TV set for a fall 2013 release.
Apple’s Purported Upcoming Products
Based on yesterday’s research note by Peter Misek, his checks with industry sources indicate that Apple is likely to launch a so-called iPhone 5S in June or July 2013. It is expected that the rumored handset will feature a new “super HD camera/screen”, better battery, and Near Field Communication technology.
On the other hand, Misek believes that it is unlikely for the purported iPhone 5S to feature “possible updates”. This includes IGZO screen from Sharp, 128 GB of storage, and six new color options in addition to the black and white slates.
As for the fifth-generation iPad, the analyst expects that the tablet will boast IGZO screen. It will also be 50 percent slimmer than its predecessor and will have reduced weight. Meanwhile, there are few details with regards to a potential Apple television set. However, Misek believes that it will be available on September or October 2013.
iTV prototypes are also floating around. Gesture and voice control along with new user interface are the main innovations.
The analyst also spoke of potential low-cost iPhone. Although it is “not greenlit yet”, the handset could possible launch in 2013. In case it will materialize, the less expensive mobile phone will be released in June or July with price ranging from $200 to $250 without a service contract.
Our checks indicate a low-cost model would be a retooled iPhone 4 with a scaled down modem, apps processor, etc. Foxconn International Holdings already has a supply chain for capacity scaling up to 200-300K units per day.
However, nothing is written on stone yet until Apple itself spread the word.
AAPL’s Lower Price Target
As to why Jefferies lowered its price target for AAPL stock to $800, Misek believes that the company’s build plans will see a slowdown from 50 percent next year. It will further decrease to 20 percent in 2014. That’s because there will be smartphone saturation in developed markets.
(Average selling prices) have likely peaked. With smartphone penetration high in developed markets, the future for Apple and the industry is developing markets.