Apple's new 6.1-inch LCD iPhone may be delayed until October, according to a new report from Morgan Stanley analyst Katy Huberty.
We currently see no delay in the ramp of Apple's upcoming flagship 5.8" or 6.5" OLED iPhones. However suspected issues with LED backlight leakage have caused a 1 month delay in mass production of the 6.1" LCD iPhone, although this is down from a 6-week delay baked into the original production forecast, according to suppliers.
Apple is purportedly planning to use 0.3t LED chips from Nichia to backlight the LTPS-LCD panels of the rumored 6.1-inch iPhone. The 0.3t LED chips allows for a reduction of the bottom bezel to 2.0-2.5mm.
Based on data from the Morgan Stanley quant team, Huberty also notes that "we see modest downside risk to September guidance vs. consensus, in line with our fundamental view. However, 1) Apple's inventory dynamic discussed above, 2) a later production launch a year ago impacting Y/Y comps, and 3) a 1 month delay in the 6.1" LCD iPhone ramp are factors that could weaken the relationship this quarter."
Despite this risk, Huberty has raised her price target to $232 from $214.
We value Apple's Hardware/Device business (82% of FY19 revenue) using a blend of an HPQ and MSFT EV / Sales multiple, and the Services business (18% of FY19 revenue) using the median of 10 internet/services/platform EV / Sales multiples. With the average internet/platform comp up 16% since May 1 (and MSFT up 12%), we've seen a meaningful re-rating of peer multiples, which subsequently increases our SOTP-driven price target for Apple to $232, from $214.
More details at the link below!
[via Nasdaq]
We currently see no delay in the ramp of Apple's upcoming flagship 5.8" or 6.5" OLED iPhones. However suspected issues with LED backlight leakage have caused a 1 month delay in mass production of the 6.1" LCD iPhone, although this is down from a 6-week delay baked into the original production forecast, according to suppliers.
Apple is purportedly planning to use 0.3t LED chips from Nichia to backlight the LTPS-LCD panels of the rumored 6.1-inch iPhone. The 0.3t LED chips allows for a reduction of the bottom bezel to 2.0-2.5mm.
Based on data from the Morgan Stanley quant team, Huberty also notes that "we see modest downside risk to September guidance vs. consensus, in line with our fundamental view. However, 1) Apple's inventory dynamic discussed above, 2) a later production launch a year ago impacting Y/Y comps, and 3) a 1 month delay in the 6.1" LCD iPhone ramp are factors that could weaken the relationship this quarter."
Despite this risk, Huberty has raised her price target to $232 from $214.
We value Apple's Hardware/Device business (82% of FY19 revenue) using a blend of an HPQ and MSFT EV / Sales multiple, and the Services business (18% of FY19 revenue) using the median of 10 internet/services/platform EV / Sales multiples. With the average internet/platform comp up 16% since May 1 (and MSFT up 12%), we've seen a meaningful re-rating of peer multiples, which subsequently increases our SOTP-driven price target for Apple to $232, from $214.
More details at the link below!
[via Nasdaq]